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:

Epinephrine

A hormone and medication, also known as adrenaline, used to treat severe allergic reactions and cardiac arrest, among other conditions.

Increased Blood Pressure

A condition where the force of the blood against the walls of the arteries is consistently too high, which can lead to health issues if left unmanaged.

Flushed Skin

A condition characterized by a red or pink tinge to the skin, often indicative of various physiological states such as embarrassment, fever, or hypertension.

Intensive Care Unit

A specialized department in a hospital that provides intensive treatment medicine to patients with severe and life-threatening illnesses and injuries.