Final answer:
The FORMAT() function is indeed used to apply local formatting to various types of fields such as numbers, dates, times, and currencies, which makes the presented statement True.
Step-by-step explanation:
The statement that FORMAT() applies local formatting to standard and custom number, date, time, and currency fields is True. The FORMAT function is used in programming, specifically within database systems like SQL Server, to convert a given value into a specified format, taking into consideration the local cultural settings. For instance, it can format dates to show the day before the month for cultures where that is the standard, or apply currency formatting that aligns with a given locale's conventions.
Using this function is quite helpful when developers need to display data in more user-friendly or culturally appropriate ways directly within a query result, without having to handle the formatting in the application layer. It's widely used in software development and data analysis to present data consistently in reports or data-driven applications that serve users from multiple locales.