What context can I use each word in?
Learn when and how to use these words with these examples!
underwrite
Example
The bank agreed to underwrite the construction of the new office building. [underwrite: verb]
Example
The insurance company underwrote the policy for the new car. [underwrote: past tense]
finance
Example
The company needed to finance the expansion of their operations. [finance: verb]
Example
He studied finance in college and now works as a financial analyst. [finance: noun]
Good things to know
Which word is more common?
Finance is a more commonly used term than underwrite in everyday language. Finance is a versatile term that covers a wide range of financial activities, while underwrite is a more specialized term used primarily in the context of insurance or investment banking.
What’s the difference in the tone of formality between underwrite and finance?
Both underwrite and finance can be used in formal and informal contexts. However, underwrite may be more commonly associated with formal or technical language due to its specialized nature.