In an Interest Rate Swap, the Principal Amount Is Called

question 10

True/False

In an interest rate swap, the principal amount is called notional principal because it is used only to calculate interest payments and is not exchanged.

---

Definitions:

Conventional

Relating to or based on norms, standards, or practices that are widely accepted and followed.

Moral Development

The process by which individuals develop attitudes and behaviors towards what is considered right and wrong.

Lawrence Kohlberg

An American psychologist best known for his theory of stages of moral development.