Here's why:
* Near Demonstrative Pronoun: "This" refers to something close to the speaker or the person being addressed.
* Far Demonstrative Pronoun: "That" refers to something further away from the speaker or the person being addressed.
Examples:
* This is my favorite book. (The book is close to the speaker)
* That is the house I grew up in. (The house is further away from the speaker)
Remember, the difference between "this" and "that" is purely about proximity!