A. The increase in interest rates will attract foreign funds to domestic assets. This will increase the value of the domestic currency as demand for the currency increases.
B. The increase in interest rates will attract foreign funds to domestic assets. This will increase the value of the domestic currency as demand for the currency increases.
C. The increase in interest rates will attract foreign funds to domestic assets. This will increase the value of the domestic currency as demand for the currency increases. Any change in the interest rate by the central bank will impact the value of the country's currency.
D. The increase in interest rates will attract foreign funds to domestic assets. This will increase the value of the domestic currency as demand for the currency increases.