Exchange traded fund and mutual fund

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Reference no: EM131820412

1. Which of the following is a difference between an exchange traded fund (ETF) and a mutual fund?

An ETF is a hybrid security, whereas a mutual fund is not a hybrid security.

An ETF can only be traded at the end of the day, whereas a mutual fund can be bought or sold throughout the trading day.

An ETF is a convertible security, whereas a mutual fund is a non-convertible security.

An ETF is a fixed income instrument, whereas a mutual fund is a variable income instrument.

An ETF provides more favorable tax treatment than a mutual fund.

2. When net new borrowings are subtracted from the interest payments a firm pays to its creditors the result is called the:

a. cash flow to creditors.

b. change in net working capital.

c. free cash flow.

d. operating cash flow.

e. cash flow from assets.

3. A decrease in net working capital for the period is a cash inflow for the firm. (T/F)

Reference no: EM131820412

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