Use the following table to identify the factors directly affecting expected cash flows and the factors directiy affecting the rate of return required by investors. Suppose that regulators eliminated certain geographic constraints on banks' operations. Which of the following is an accurate description of the effect of relaxed geographic constraints on banks' operations on commercial banks' expected cash flows? The cost of banks' operations in the regions increases; expected cash flows decrease. Commerciat banks face more regional competition; expected cash flows decrease. The cost of banks' operations in the regions declines; expected cash flows increase. Commercial banks expand across new regions; expected cash flows increase. Suppose that the economy's money supply increases (but does not cause inflation). Which of the following is an accurate description of the effect of the increase in money supply on the rate of return required by investors? Interest rates fall, the risk-free interest rate falls, and the rate of return required by investors dedines. Interest rates rise, the risk-free interest rate falls, and the rate of return required by investors increases. Interest rates rise but the risk-free interest rate falls, and the rate of return required by investors declines. Interest rates rise, the risk-free interest rate nises, and the rate of return required by investors increases