Sat 4 Sep, 2010 07:57 am
The Fed will be guided by its assessment of how much do banks, hedge funds, pension funds and others stand to lose and whether consumers and businesses will be able to stomach higher interest rates and stricter loan underwriting.
I would like you to help me find out the right sense for the phrase "stricter loan underwriting" in the above quote from the following quote which contains many senses for the word "underwrite":
v. un•der•wrote (-r t ), un•der•writ•ten (-r t n), un•der•writ•ing, un•der•writes
1. To assume financial responsibility for; guarantee against failure: underwrite a theatrical production.
a. To sign (an insurance policy) so as to assume liability in case of specified losses.
b. To insure.
c. To insure against losses totaling (a given amount).
a. To guarantee the purchase of (a full issue of stocks or bonds).
b. To agree to buy the unsold part of (stock not yet sold publicly) at a fixed time and price.
a. To write under or at the end of something.
b. To subscribe to, especially to sign or endorse (a document).
5. To support or agree to (a decision, for example).
To act as an underwriter, especially to issue an insurance policy.