Multiple choice 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 Reveal answer Fill a bubble to check yourself B Correct answer Explanation In finance and insurance, underwriting is the process where a financial service provider takes on financial risk for a fee, such as in insurance policies or securities issuance.