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.