mock concepts and questions concepts, investment, understand, wrt

redskins44

I have few doubts. I have seen these concepts on mocks or sample exams. If someone can please help me understand these.
1. What is the role of dividend payments in case of ETFs and Open end mutual funds ? Are dividends reinvested to buy more shares or, they are given out to share holders ?
2. What is meant “deteriorating fundamentals” wrt to investment grade bonds and how does it effect credit risk ?
3. What is recovery rate and credit risk of a debenture compared to a mortgage based bond?
(higher/lower) ?
Thanks a lot in advance !