True or False: A paracrine hormone acts locally on cells that produce the hormone.

A paracrine hormone is characterized by its action on nearby cells rather than the cells that produce it. By definition, paracrine signaling involves the release of hormones or signaling molecules that affect adjacent cells in the same tissue, thus allowing for localized effects within a specific area. This contrasts with autocrine signaling, where a cell produces a hormone that binds to receptors on its own surface, leading to effects within the same cell that produced the hormone.

In this context, stating that a paracrine hormone acts locally on the cells that produce it is not accurate; instead, it specifically affects neighboring cells, which is crucial for coordinating functions within a tissue or organ.