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In case of sudden holiday, maturity date falls on :
- a)Next following day
- b)Previous day
- c)On the same day
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
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In case of sudden holiday, maturity date falls on :a)Next following da...
Maturity Date and Sudden Holiday
Definition: Maturity date refers to the date on which the principal amount of a financial instrument becomes due and payable to the investor. A sudden holiday refers to a sudden closure of the financial institution or the stock exchange on a particular day.
Impact on Maturity Date: In case of a sudden holiday, the maturity date falls on the next following day, and not on the same day or the previous day.
Explanation: The reason for this is that when a sudden holiday occurs on the maturity date of a financial instrument, the investor is not able to receive the payment on the due date. Therefore, the payment is deferred to the next working day. This is in accordance with the rules and regulations set by the financial institution or stock exchange.
For example, if the maturity date of a financial instrument is on a Monday, and a sudden holiday occurs on that day, then the maturity date will be postponed to the next following day, which is Tuesday.
Conclusion: It is important for investors to be aware of the impact of sudden holidays on the maturity date of their financial instruments. This will help them to plan their investments and manage their finances effectively.
Definition: Maturity date refers to the date on which the principal amount of a financial instrument becomes due and payable to the investor. A sudden holiday refers to a sudden closure of the financial institution or the stock exchange on a particular day.
Impact on Maturity Date: In case of a sudden holiday, the maturity date falls on the next following day, and not on the same day or the previous day.
Explanation: The reason for this is that when a sudden holiday occurs on the maturity date of a financial instrument, the investor is not able to receive the payment on the due date. Therefore, the payment is deferred to the next working day. This is in accordance with the rules and regulations set by the financial institution or stock exchange.
For example, if the maturity date of a financial instrument is on a Monday, and a sudden holiday occurs on that day, then the maturity date will be postponed to the next following day, which is Tuesday.
Conclusion: It is important for investors to be aware of the impact of sudden holidays on the maturity date of their financial instruments. This will help them to plan their investments and manage their finances effectively.
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In case of sudden holiday, maturity date falls on :a)Next following da...
Because its a sudden holiday
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In case of sudden holiday, maturity date falls on :a)Next following dayb)Previous dayc)On the same dayd)None of the aboveCorrect answer is option 'A'. Can you explain this answer?
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In case of sudden holiday, maturity date falls on :a)Next following dayb)Previous dayc)On the same dayd)None of the aboveCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In case of sudden holiday, maturity date falls on :a)Next following dayb)Previous dayc)On the same dayd)None of the aboveCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In case of sudden holiday, maturity date falls on :a)Next following dayb)Previous dayc)On the same dayd)None of the aboveCorrect answer is option 'A'. Can you explain this answer?.
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