Definition

Noun: 1. Paper money of small denomination: Fractional currency refers to paper money (banknotes or bills) issued by a government or central bank that has a face value less than the standard, basic unit of that country's currency. It is typically used for small, everyday transactions.

Usage

Fractional currency is a specific term used in economics, finance, and historical contexts. It describes the physical paper notes, not coins, that represent values like 3 cents, 10 cents, or 25 cents, when the basic unit is the dollar. Its primary function is to facilitate commerce by providing a convenient medium for small-value exchanges.

Examples

• Historical Context:
• General Description:
• Economic Function:

Advanced Usage

• "Postage Currency" or "Postage Stamp Currency": A specific type of U.S. fractional currency issued between 1862 and 1876, so named because the designs resembled postage stamps. It was a direct precursor to the more general fractional currency notes.
  • The first issue of U.S. fractional currency is often called postage currency by collectors.

Variants and Related Words

• Fractional Note (n): A synonym for a single piece of fractional currency.
  • He found an old 25-cent fractional note in his grandfather's album.
• Shinplaster (n, historical/informal): A derogatory slang term, primarily used in the U.S. and Canada, for low-value paper currency, including fractional currency. It implied the notes were nearly worthless.
• Specie (n): Money in the form of coins, especially gold or silver, often contrasted with paper money like fractional currency.

Synonyms

• Small-denomination notes
• Minor currency (in a paper context)
• Subunit paper money

Antonyms

• Specie (when referring to coinage)
• Bullion (precious metal in bulk form)
• Major currency / Unit currency (e.g., a one-dollar note or higher)

Noun

1. paper currency in denominations less than the basic monetary unit