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Nathaniel got in a bicycle accident on his way to work downtown. He has medical insurance, but not enough money to cover the other 50% of the costs. So he opens up a new credit card to pay his medical bill. Which phrase best describes Nathaniel's financial decision?

a. Prudent financial planning.

b. Strategic budgeting.

c. Rational economic decision.

d. Short-term financial solution.

1 Answer

1 vote

Final answer:

Nathaniel's decision to use a credit card for his medical bills represents a short-term financial solution. It's an immediate response to a financial need rather than a strategic plan, which may have longer-term implications.

Step-by-step explanation:

Nathaniel got in a bicycle accident and decided to open a new credit card to pay his medical bill, since his medical insurance did not cover all of the costs. The best phrase to describe Nathaniel's financial decision is d. Short-term financial solution. This action reflects a reaction to an immediate financial need rather than a premeditated financial strategy. It's important for individuals to explore different financial strategies such as establishing an emergency fund, investing early for long-term growth, utilizing insurance to manage risk, and understanding the costs and benefits of using credit. While Nathaniel's decision addressed his immediate need, it may have longer-term ramifications in terms of interest charges and debt management, which are critical aspects of personal financial literacy.

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