How is a Business Day defined?

The definition of a Business Day is widely recognized as a calendar day that is not a weekend or a federal holiday. This definition is significant for various transactions, especially in finance, banking, and commerce, as it sets the framework for when business activities are conducted.

Business days are essential for determining deadlines for processing transactions, settling trades, or executing contracts. For example, if a transaction is initiated on a Friday, it is generally expected to be processed on the next business day, which would typically be Monday, unless that Monday itself is a holiday.

The other options do not capture the standard definition of a Business Day accurately. Defining a business day simply as any day of the week fails to account for non-business days such as weekends and holidays. A day characterized by high transaction volume does not inherently indicate a business day and could vary widely depending on the industry. Lastly, a specific time frame for business operations does not relate directly to the calendar structure of days but rather to the hours during which a business operates, which could be different from one organization to another.

Thus, option C accurately encompasses the conventional understanding of a Business Day as a day on which regular business operations are conducted, excluding weekends and federally recognized holidays.