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Q.1) Amit is using his money to buy assets like house, commercial land and machines.Write what is he actually doing? [1]
Q.2) Dhananjay is a government employee and belongs to a rich household whereas Raju is a construction worker and comes from a poor rural household. Both are in need and wish to take loan. Create a list of arguments explaining who between the two would successfully be able to arrange money from a formal source. Why? [3]

Dear Student,

1.  Amit is using his money to buy assets like house, land, machines etc. In a way, he is securing his future with the help of his savings so that these immovable assets can help him if he accidentally meets any monetary crisis. This is called 'personal investment'. It is very important for everyone to secure the future and plan retirement easily.He is investing his capital in these assets for earning benefits in future.


Regards,

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1 )---   amit is actually putting investment on buying these assets
2 )---   dhananjay will be able to arrange money from the formal source of credit .this is because he belongs to a rich family and also owns assets which he will put in the form of a collateral which is compulsory in case of formal source of credit but on the other hand raju is a poor construction worker and doesnt have any asset to be put as collateral thus raju is unable to arrange money from a foormal source of credit


hope it helps!!! 
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