True or False

1. Pure credit swaps, interest rate swaps, and spot contracts are all examples of derivative securities.

2. The sole purpose of derivatives is the hedge against risk.

3. In a forward contract, the future exchange of assets is conducted through a mark-to-market process.

4. The Liquidity Coverage Ratio (LCR) provides a measure for the amount of liquid assets a bank needs to have relative to its net cash outflows and the ratio must be over 100%.