Why is 100 cents a dollar?

Answer 1

100 cents make up a dollar because of the decimal system used in currency, where one unit (in this case, the dollar) is divided into 100 smaller units (cents). This division allows for easier calculations and transactions. Historically, the cent was established as a fraction of the dollar when the U.S. dollar was created, with the intent to standardize and simplify monetary exchanges. Thus, the relationship of 100 cents to one dollar is a fundamental aspect of the currency structure.