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What is meant by “Underwriting” the term frequently used in financial sector?
Under valuation of the assets
The act of taking on a risk for a fee
Giving a guarantee that a loan will not become a bad loan
The act of permission to float an IPO
None of the above
In insurance, underwriting is to sign and accept liability and guaranteeing payment in case loss or damage occurs. Underwriting is provided by a large financial service provider such as a bank, insurer or investment house.
By: Munesh Kumari ProfileResourcesReport error
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