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NaBH4 is a milder reducing agent compared to LiAlH4. It is selective for aldehydes and ketones, leaving other functional groups like esters and carboxylic acids untouched. LiAlH4, on the other hand, is a much stronger reducing agent and can reduce a wider range of functional groups, including esters and carboxylic acids. Therefore, NaBH4 is preferred for reactions where selectivity is important, while LiAlH4 is used for more vigorous reductions.