Banks face losses from three sources :
their own position if short or long in a particular currency; dealing positions
taken by employees who gamble with the bank's money; and defaults by
counter-parties to forward exchange contracts and covering transactions. These
risks were well illustrated by events in 1974: Bankhaus Herstatt, cologne,
collapsed due largely to losses on its foreign exchange exposures; Lloyds Bank,
Lugano, lost USD77 million due to unauthofised trading by staff. Herstatt's
closure by the Bundesbank during working hours left many banks with unfulfilled
foreign exchange transactions. Since then banks and authorities have tightened
their control. Banks still take a position on foreign currencies and put traders
on commission to speculate on their behalf, but mainly on within-day trading or
on overnight positions. On longer-term positions banks aim to match liabilities
and claims in a particular currency or cover the difference in the swap
market.
单选题
Banks in international lending face the risks common to all banks: liquidity risk, interest rate risk, credit (asset) risk, and contingent liabilities risk.
【正确答案】
C
【答案解析】文章通篇提及银行面临的三类风险，并加以举例，并没有提及Banks in international lending。
单选题
Banks face losses from three sources : their own position ; dealing positions taken by employees, and defaults by counter parties to forward exchange contracts and covering transactions.
【正确答案】
A
【答案解析】从文中第一句话Banks face losses from three sources…可以直接找到。
单选题
If employees of a bank gamble in foreign exchange dealings with the bank's money, the bank will suffer heavy losses of foreign currencies.
【正确答案】
A
【答案解析】第一句中间dealing positions taken by employees who gamble with the bank's money以及举例，都说明了题中观点是正确的。