Yamaha RX-A3010 Questions

I have a couple of questions I hope somebody can answer for me.

I wired the RX-A3010, Direct TV box and Samsung UN65D800 TV the following:

HDMI out from Direct TV box into HDMI Input AV1 of RX-A3010 and HDMI Out 1 (ARC) of RX-A3010 into HDMI 2 input (ARC) of TV.

Now for my first question. When the RX-A3010 is turn off I can still watch TV (Picture and Sound), does the RX-A3010 pass the signal from Direct TV to TV even tho the RX-A3010 unit is turned off?

Question 2. Are there any setting to alway get 7.1 even tho source is only 5.1 on all Sound Program.