Difference between lives and inhabits

[Guest]

Test No. incompl/elem-12 "We went on holiday", question 4

Do you know where the President of America .........?

(a) leaves
(b) lives
(c) live
(d) inhabits

Test No. incompl/elem-12 "We went on holiday", answer 4

Do you know where the President of America lives?

Correct answer: (b) lives

Why is it not inhabits?

[Mister Micawber]

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Inhabits is usually used of animals and aborigines; it shares its root with habitat. Used of individuals and houses, it sounds jocose.
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Native English teacher at Mister Micawber's