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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“The logical English train a scholar as they train an engineer. Oxford is Greek factory, as Wilton mills weave carpet, and Sheffield grinds steel. They know the use of a tutor, as they know the use of a horse; and they draw the greatest amount of benefit from both. The reading men are kept by hard walking, hard riding, and measured eating and drinking, at the top of their condition, and two days before the examination, do not work but lounge, ride, or run, to be fresh on the college doomsday.”
—Ralph Waldo Emerson (1803–1882)