A Higher Discount Rate Exerts Upward Pressure on Other Short-Term

A higher discount rate exerts upward pressure on other short-term interest rates because

A) banks try to raise funds from sources other than discount loans.
B) by law, the spread between the discount rate and other interest rates must remain constant.
C) other lenders become aware that the Fed would like them to raise their interest rates as well.
D) banks generally increase their lending following a rise in the discount rate.