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The 1, 2, 5 scheme is simple and consistent. You use the same algorithm for giving back change, regardless of the sum. There are other similar schemes, but 1, 2
by jltsiren 3y ago
The 1, 2, 5 scheme is simple and consistent. You use the same algorithm for giving back change, regardless of the sum. There are other similar schemes, but 1, 2, 5 seems to be the most popular. The US scheme, on the other hand, is unnecessarily complex. For some weird reason, there are $0.25 coins but $20 bills. For the sake of consistency and simplicity, one of them should be replaced by either a $0.20 coin or a $25 bill.
- hakfoo 3y agoThe reason is that the US dollar was originally based on the Spanish coins of the time. This meant that they had a lot of 8-real coins in circulation that could pass for $1, and 2-real coins that passed for 25c. People got used to that model, so as "real" American coinage scaled up, it continued to be in the 25c denomination. A 20c coin was tried to great failure in the 1870s. There was a $2.50 gold coin issued for most of the era when gold coins were issued for circulation. I note the 1-5 only scheme is fairly common too: Japan and South Korea went there (with both having a 2000 denomination note as a limited run commemorative); Russia went that way for their 1998 currency reform, but more recently added a 200 and 2000.