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:
“Nations are possessed with an insane ambition to perpetuate the memory of themselves by the amount of hammered stone they leave. What if equal pains were taken to smooth and polish their manners?”
—Henry David Thoreau (1817–1862)