单选题 A major type of risk that banks face is credit risk or the failure of a counter-party to perform according to a contractual arrangement. This risk applies not only to loans but also to other on-and-off balance sheet exposures such as guarantees, acceptances and securities investments. Serious banking problems have arisen from the failure of banks to recognize impaired assets, to create reserves for writing off these assets, and to suspend recognition of interest income when appropriate.

单选题 "Balance Sheet" means the statement on which a bank's assets and liabilities are listed.
A. Right B. Wrong C. Doesn't say

【正确答案】 A

【答案解析】从文中第二句后半部分other on-and-off balance sheet exposures such as guarantees, acceptances and securities investments. 可以倒推出来。资产负债表外业务没有涉及资产和负债，那么资产负债表就应该包含资产和负债。on-and-off balance sheet资产负债表内外，balance sheet。

单选题 The word "exposures" in this paragraph can be understood as "risks".
A. Right B. Wrong C. Doesn't say

【正确答案】 A

【答案解析】从第二句前半部分This risk applies not only to loans but also to other on-and-off balance sheet exposures such as…可推导出来。

单选题 Reserves for writing off impaired assets are unnecessary.
A. Right B. Wrong C. Doesn't say

【正确答案】 B

【答案解析】从文中最后一句Serious banking problems have arisen from the failure of banks...to create reserves for writing off these assets...可以推导出来。句中意思指由于银行没有计提用于注销坏账的准备金而引发了严重的问题。