Final answer:
The relationship between income and debt in loan applications is true.
Step-by-step explanation:
The statement: 'The relationship between income and debt used in analyzing an applicant's qualifications for a loan' is true.
When applying for a loan, lenders typically assess an individual's income and debt level to determine their eligibility. A borrower with a higher income and lower debt-to-income ratio is generally considered more creditworthy and may have a higher chance of loan approval.
For example, consider two loan applicants. Applicant A has a high income and low debt, while Applicant B has a low income and high debt. The lender is more likely to approve Applicant A's loan application as they have a stronger financial position.