This is called a “denominational” or “nominal” system of denomination. In this system, we would say that there are 20 quarters in 10 dollars because there are 20 quarters in each dollar. This is the way we count when we say things like “there are 25 cents in a quarter.” It doesn’t matter if the coins are large or small; all that matters is their value as money.

This is called an “actual” or “real” system of denomination. In this system, we would say there are 2 quarters in 1 dollar because 2 quarters are needed to make 1 dollar; however, it can also be said that there is 1 quarter in 2 dollars because it takes 1 quarter to make 2 dollars. Again, it doesn’t matter if the coins are large or small; all that matters is how many coins.

Last modified: September 12, 2022