Question
Muchuus's mortagage was approved by the Zambia National Building society. Muchuu however, decided to purchase a model of a car called Bugatti using the mortgage.
Muchuus's mortagage was approved by the Zambia National Building society. Muchuu however, decided to purchase a model of a car called Bugatti using the mortgage.
On the
other hand, Muchuu had initial plans of investing money in some risky online
business. He therefore, approached a money lending instituition and applied for
a loan in the name of exporting goats to Democratic Republic of Congo and his
loan was also approved for such a lucrative investment by the lending
instituition.
As a
student of principles of economics, discuss the above scenario and make
relevant comparisons an distinctions.
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