Final answer:
Cholesterol is vital for producing cell membranes, hormones, and bile acids. High levels, however, can contribute to heart disease.
Step-by-step explanation:
It is true that cholesterol is necessary for certain body functions but too much can be harmful to health. Cholesterol is an essential component of cell membranes and serves as a precursor for the production of vitamin D, hormones, and bile acids. However, excessive levels of cholesterol in the bloodstream can lead to the development of atherosclerosis and heart disease.