The current market value or contingent claim value of OBS items overestimates their notional value.

Question

Quizplus · Accepted Answer

The notional value of OBS (Off-Balance Sheet) items is a reference amount and does not represent the current market or contingent claim value, which can be higher or lower depending on the specific item and market conditions. The notional value is often used for descriptive purposes rather than indicating the actual risk or value.

The Current Market Value or Contingent Claim Value of OBS