An extension clause allows the date of maturity of an instrument to be extended to sometime in the future.

Name: An extension clause allows the date of maturity of an instrument to be extended to sometime in the future.
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Quizplus · Accepted Answer

An extension clause is a provision in a financial instrument that allows for the maturity date to be extended beyond the original date. It is typically included in debt securities and can be exercised by the issuer or the holder of the security. Therefore the statement is true.

An Extension Clause Allows the Date of Maturity of an Instrument