The process of evaluating a borrower's loan request in terms of potential profitability and risk is referred to as underwriting. True False

TrueThe process of evaluating a borrower's loan request in terms of potential profitability and risk is indeed referred to as underwriting. Underwriting involves assessing the creditworthiness of a borrower, determining the level of risk involved, and deciding whether to approve the loan request. It is a crucial step in the lending process, as it helps lenders make informed decisions about which borrowers to extend credit to and at what terms.