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)