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Hi Khalid,
Rather than trying to reword it and be unprecise, I suggest you to go to https://docs.aws.amazon.com/IAM/latest/UserGuide/access_policies_boundaries.html to see how resource-based policies and identity-based policies work together.
The doc has nice charts that make it more visual so easier to understand.
Best.
Didier
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Thanks Didier, will look further.
Khalid, you're welcome.
Also worth looking at is this flowchart which presents the chart above in a different way: https://docs.aws.amazon.com/IAM/latest/UserGuide/reference_policies_evaluation-logic.html#policy-eval-denyallow