A Denomination is a classification for the stated or face value of financial instruments, such as currency notes and coins. They also apply to securities, bonds and other investments. Denominations can be in any form of currency, including digital currencies. The denominations are typically set by the issuing authority and reflect the relative values of different units within that currency system.For example, in most countries one dollar is divided into 100 cents, so a note with a face value of $100 would have 100 individual units or "cents" on it.In some cases there may be multiple levels of denominations - for example Euros are broken down into cents (the smallest), then "euros", then "decimals" (10ths).Denominations are important because they provide a way to standardize these different types of investments. This makes it easier to trade them and also helps investors keep track of their holdings. In some cases, denominations may also be used to regulate how much money can be circulated in an economy.
