From Simple English Wikipedia, the free encyclopedia
When dealing with
money
,
denomination
is the value of the individual
currency
.
For example a one
dollar
bill, a 100
dollar
bill, a
penny
and a
quarter
are all different denominations of money. A one
dollar
bill and a one
dollar
coin are the same denomination as they are the same value.
When countries form a monetary union, redenomination may be required and the conversion ratio is often not a nice even number, or even less than 1.
When countries that had a "
pound (£)
-
shilling (s)
-
pence (d)
" (
£sd
) currency system converted to a system which had pounds (£) and pennies (p) or dollars ($) and cents (¢) it was called decimalisation. In the £sd system, £1 = 20s and 1s = 12d, so £1 = 240d. However in the new systems £1 = 100p or $1 = 100¢ or 100c - a
decimal-based
system, hence the word "decimalised".