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:

Increase Insulin

Refers to actions or treatments aimed at raising the levels of insulin, a hormone regulating blood sugar.

Decrease Antioxidants

The reduction in substances that can prevent or slow damage to cells caused by free radicals, often due to dietary changes or environmental factors.

Antioxidants

Substances that can prevent or slow damage to cells caused by free radicals, often found in foods.

Free Radicals

Unstable atoms or molecules with unpaired electrons that can cause damage to cells, proteins, and DNA by stealing electrons from other molecules.