Word
prudential
Phoneticspru·den·tial
US/pɹuˈdɛnʃəɫ/
UK/pɹuːdˈɛnʃəl/
Definition
adj. showing good judgment and care, especially when making decisions about money or business. It describes acting in a way that avoids unnecessary risks.
adj. relating to or showing care and forethought in the management of practical affairs, particularly regarding financial or legal risk. Often describes institutional policies or individual decision-making aimed at long-term stability.
Examples
“The bank follows prudential rules to keep your money safe.”
“The board decided that a prudential approach to expansion was better than taking on massive debt during an uncertain market.”
“Regulators introduced new prudential standards to ensure that insurance companies maintain enough capital to cover potential claims even during a severe economic downturn.”
Examples
simple
“The bank follows prudential rules to keep your money safe.”
contextual
“The board decided that a prudential approach to expansion was better than taking on massive debt during an uncertain market.”
complex
“Regulators introduced new prudential standards to ensure that insurance companies maintain enough capital to cover potential claims even during a severe economic downturn.”
Usage
Commonly used in financial and legal contexts; often modifies nouns like 'reasons', 'measures', or 'judgment'.
Word family
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englishreference.com/q/prudential