The notional amount (or notional principal amount or notional value) on a financial instrument is the nominal or face amount that is used to calculate payments made on that instrument. This amount generally does not change hands and is thus referred to as notional.
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Famous quotes containing the word amount:
“I believe it is the conviction of the purest men, that the net amount of man and man does not much vary. Each is incomparably superior to his companion in some faculty. His want of skill in other directions, has added to his fitness for his own work.”
—Ralph Waldo Emerson (1803–1882)