1. The "over-the-counter" market received its name years ago because brokerage firms would hold inventories of stocks and then sell them by literally passing them over the counter to the buyer...true or false

2. The assistant treasurer of Monroe Tires, Inc., is trying to determine the appropriate cash level. The company’s cash balances have been fluctuating wildly because of unpredictable and wide-ranging receipts and disbursements. The best estimate of annual disbursements is $5,000,000. The investment broker charges $75 per securities transaction. Short-term investment interest rates are 3%. The company does not mind a $0 cash balance but does not want the balance to be negative. According to the Baumol model, what is the optimal cash transfer level? $111,803.40 $63.24 $158,113.88 $4,000.00.