Final answer:
The statement is false as the network's demands for funds from distributors is related to broadcasting rights, not directly to the production of channel lineups. A local station broadcasting national network programming is called an affiliate.
Step-by-step explanation:
The statement "The amount of money a network demands from distributors is used in producing channel lineups" is false. Generally, the funds that a network demands from distributors are for the rights to broadcast the network's content. The decision on which channels to include in lineups is typically a separate process, involving considerations about demand, content offerings, and agreements among networks, cable providers, and other content distributors. As for the question about a local station broadcasting national network programming, the correct term for this is an affiliate.