Question

What is the meaning of the quote 'Neither a borrower nor a lender be; for loan oft loses both itself and friend.' (lines 17-18)?

1) It is important to lend money to friends
2) Borrowing money can lead to the loss of both money and friendship
3) It is better to be a borrower than a lender
4) Loaning money always benefits both parties

Answer 1

The quote advises against lending or borrowing money from friends as it can result in losing both the money and the friendship, highlighting the risks of mixing finances with personal relationships. The correct option is 2.

Step-by-step explanation:

The meaning of the quote 'Neither a borrower nor a lender be; for loan oft loses both itself and friend.' is that engaging in financial transactions such as lending or borrowing with friends can lead to the loss of both the money and the friendship.

It suggests that financial dealings can complicate relationships and result in negative outcomes, contrasting with making sound investment decisions that have long-term payoffs, which is economically sensible.

For instance, borrowing for education or a business machine is considered a wise investment because it ultimately leads to increased earnings or profits which can pay off the loan. The correct option is 2.