QUESTION 1 The sole purpose of derivatives is the hedge against risk. O True O False QUESTION 2 In a futures contract, the future exchange of assets is priced through a mark-to-market process. O True O False QUESTION 3 Pure credit swaps, forward contracts, and spot contracts are all examples of derivative securities. O True O False QUESTION 4 A loan commitment is considered an off-balance sheet item because it will never get reflected on the balance sheet. O True O False