A Relaxation of Credit Standards Is Expected to Affect Profits

question 127

True/False

A relaxation of credit standards is expected to affect profits positively due to lower carrying costs, whereas tightening credit standards would affect profits negatively as a result of higher carrying costs.

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Definitions:

Dissociation

A mental process of disconnecting from one’s thoughts, feelings, memories, or sense of identity.

Role-Playing

A method of learning or behavior change that involves acting out a role, possibly as oneself or as another person.

Divided-Consciousness

A theory suggesting that during hypnosis, the consciousness is split; one part responds to the hypnotist's suggestions, while another part, a "hidden observer", remains aware of reality.

Paradoxical Behavior

Actions that appear contradictory to the expected behavior or outcome.