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:

Alienating

The process by which individuals become estranged or isolated from their social environment or sense of self.

Dehumanizing

The process of depriving people of their human qualities, identity or dignity, often used to justify discrimination, exploitation, or violence against certain groups.

Marxian Analysis

An approach to sociology that interprets society through the lens of Marxist theory, focusing on issues of class conflict, economic power, and social change.

Current Event

An incident or situation happening at the present time which is of interest to the public, often reported by the media.