According to a Wall Street Journal article published in September of 2018,

The Bank of Russia [Russias central bank] raised its key interest rate to 7.5% from 7.25%, ending a series of cuts.

Assuming:

• Other conditions (such as inflation rates, risk, etc.) in Russia are unchanged over this period.
• Interest rates, inflation and other conditions in the US remain steady over this period.
• All else is held constant.

Consider the market for foreign exchange between the US and Russia. Which of the following is correct?

Group of answer choices

Supply of rubles increases because there is now a higher demand for rubles.

None of the other answers are correct.

Supply of rubles decreases because the ruble is appreciating against the dollar.

Supply of rubles decreases because Russian investors purchase fewer US securities.

Supply of rubles increases because investors are buying more dollar denominated securities