Underwriting
What Underwriting means in Economics A-Level, as defined for AQA.
Definition of Underwriting
Check what you remember
Read the wording for your board, then hide it and explain Underwriting in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
A core function of investment banks involving new stock or bond issues to help large corporations and governments raise capital.
Topics that use Underwriting
- Commercial banks and investment banks (AQA A-Level)
Related terms
- Commercial banks
- Credit creation
- Financial intermediation
- Financial markets
- Investment banks
- Liquidity
- Liquidity vs Profitability
- Market participants
Using Underwriting in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge