State whether each statement is TRUE, FALSE, UNCERTAIN and provide an explanation in each case.

1. Units of a mutual fund, held by investors represent debt of the mutual fund to the investors

2. If the nominal intrest rate rises from 4% to 8% and simultaneaously the expected rate of inflation rises from 2% to 4%, then corporations will raise less funds by issuing bonds.

3. Selling wheat future contracts to hedge against the price risk of wheat is not always economically beneficial to the seller of wheat.

4. Off balance sheet activities of a bank do not create any risk to the bank.