4. Which of the following is NOT true about the discount mechanism in the "world that Bagehot knew"? O The discounting bank raises its quoted discount rate to discourage demand for discount, and lowers to encourage O Banks ensure their own future liquidity by arranging a portfolio of bills maturing at different dates O Discounting banks change their quoted discount rates in order to balance their own cash inflow and outflow O The market rate of interest depends on the marketwide balance between cash inflow from maturing bills and cash outflow from new discounts O The discounting bank can avoid liquidity risk by creating deposits rather than lending its note reserve