The executives at your firm are meeting to discuss the company's cash account. Your colleague makes the following statement: "Our cash balance needs to be high enough to meet our day-to-day needs, as well as serve as a precautionary source of liquidity due to the cyclicality of our earnings. However, keeping the balance too high comes with the cost of less return on our capital. As we have easy access to capital markets, we are more willing to pay for the liquidity offered by cash."

Which of the above statements is incorrect?

A statement regarding access to capital markets

B statement regarding the cost of holding cash

C All statements are correct

D statement regarding the motivation for holding cash