Fractional Monetary Unit (Noun)
Meaning
A monetary unit that is valued at a fraction (usually one hundredth) of the basic monetary unit.
Classification
Nouns denoting quantities and units of measure.
Examples
- The United States uses the cent as its fractional monetary unit, with one cent being equal to one hundredth of a dollar.
- In the eurozone, the eurocent is the fractional monetary unit, with 100 eurocents equal to 1 euro.
- Some countries, like Japan, use a fractional monetary unit called sen, which is equal to one hundredth of a yen.
- A fractional monetary unit like the cent makes it easier for people to calculate exact change when making small purchases.
- Historically, the British penny was a fractional monetary unit, with 240 pence equal to 1 pound sterling before decimalization in 1971.