A. Cholesterol is a soft waxy, fat-like substance in a person's blood that originates from two major sources, dietary intake and liver production. Their daily job is to maintain cell walls, hormones and other tissues. The body uses cholesterol to produce many hormones, Vitamin-D, and the bile acids that help to digest fat. Dietary fat & oil are often targeted as the main dietary factors, which affects blood cholesterol. Fat serves many functions in the body, therefore, a fat free diet is not a healthy diet. However, the amount and type of fat in the diet is important in controlling cholesterol. As cholesterol piggy-back on proteins in the blood, they are named according to the type of carrier they associate with and can be classified as the good, the bad and the ugly.