What are the key differences between loans and investments?
An example of an AI chatbot conversation about loans and investments.
What are the key differences between loans and investments?
Loans are borrowed funds that need to be repaid with interest, while investments are assets purchased to generate returns.
Can you give me examples of each?
Sure! A loan example is a mortgage, while an investment example is buying stocks.
What are the risks associated with each?
Loans can lead to debt if not managed well, while investments can lose value depending on market conditions.
Which one is better for long-term financial growth?
Investments are generally better for long-term growth, as they can appreciate over time, unlike loans.
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