Assume That Interest Rates in London Increase Relative to Those

Multiple Choice

Assume that interest rates in London increase relative to those in Switzerland.Other things equal, under a floating exchange rate system one would expect the pound (relative to the Swiss franc) to

A) depreciate due to the increased demand for pounds.
B) depreciate due to the increased demand for Swiss francs.
C) appreciate due to the increased demand for Swiss francs.
D) appreciate due to the increased demand for pounds.