If the exchange rate is above the equilibrium exchange rate, then

A$.$ the quantity of domestic assets supplied is less than the quantity of domestic assets demanded, and the domestic currency will depreciate.

B$.$ the quantity of domestic assets supplied is less than the quantity of domestic assets demanded, and the domestic currency will appreciate

C$.$ the quantity of domestic assets supplied is greater than the quantity of domestic assets demanded, and the domestic currency will depreciate.

D$.$ the quantity of domestic assets supplied is greater than the quantity of domestic assets demanded, and the domestic currency will appreciate

Based on the figure, equilibrium in the foreign exchange market occurs at shows excess supply and shows excess demand.