Understanding Borrowing and Lending

What is the primary difference between borrowing and lending?

• Borrowing involves giving money, while lending involves receiving money.

• Borrowing involves receiving money with a plan to repay, while lending involves giving money with the expectation of repayment.

• Borrowing is always interest-free, while lending always involves interest.

• Borrowing is a form of investment, while lending is a form of saving.

In the pizza scenario, what does the term 'interest' refer to?

• The cost of the pizza.

• The initial amount of money lent.

• The total amount of money borrowed.

• The extra money paid back along with the loan.

Why did the character decide not to borrow money for pizza?

• Because they didn't want to pay back with interest.

• Because they had enough money at home.

• Because they wanted to save money for something else.

• Because they didn't like pizza.