Use the following table to identify the factors directly affecting expected cash flows and the factors directly affecting the rate of return required by investors. Expected Cash Flows Determinant Change in economic growth Required Rate of Return by Investors Change in industry conditions Change in the risk-free interest rate Change in the risk premium Management abilities Suppose that the risk-free interest rate increases. Which of the following is an accurate description of the effect of a lower risk-free interest rate on commercial banks' expected cash flows? The interest paid on deposits decreases to a greater degree than the interest earned on loans and investments; expected cash flows rise. The interest paid on deposits increases to a smaller degree than the interest earned on loans and investments: expected cash flows rise. The interest paid on deposits increases to a smaller degree than the interest earned on loans and investments, expected cash flowes decline The interest paid on deposits increases to a greater degree than the interest earned on loans and investments expected cash flows decline