Financial Risk Manager Part 1

Explanation

The term 'holiday variation' refers to the phenomenon where the dates of certain holidays change from year to year. While these holidays occur approximately in the same period each year, their exact dates can vary. This is particularly true for holidays that are based on lunar calendars or other non-Gregorian calendar systems.

Key Points:

• Example: Easter, a Christian holiday, does not have a fixed date in the Gregorian calendar because it is based on the lunar calendar. It is observed on the first Sunday after the first full moon following the vernal equinox, resulting in dates varying between March 22 and April 25.
• Implications: This variation in holiday dates can have significant implications in various fields, such as business and economics, where accurate forecasting and planning are crucial.

Why other options are incorrect:

• Choice A: While dates of holidays may change between countries, this refers to geographical differences rather than temporal variation within a single calendar system.
• Choice B: This refers to differences in the number of holidays between countries, which is about cultural/national differences rather than date variations.
• Choice C: This refers to changes in the quantity of holidays from year to year, not the shifting dates of specific holidays.