Liquidity Asset Management Debt Profitability Average collection period

Some bank loans require the firm to maintain some amount of money on a balance at the bank which is known as:

A) compensating balance B) transactions motive C) simple interest balance D) precautionary motive

Royal, Inc. purchases each unit of product X for $100 and can sell it in the market for $135. The price of the product for Royal would be $100

Indicate whether the statement is true or false