A Moral Hazard Situation Arises in the Lender of Last

A moral hazard situation arises in the lender of last resort function because:

A) A central bank finds it difficult to distinguish illiquid from insolvent banks
B) A central bank usually will only make a loan to a bank after it becomes insolvent
C) A central bank usually undervalues the assets of a bank in a crisis
D) The central bank is the first place a bank facing a crisis will turn