FUNDAMENTALS OF COMPUTER

Detailed explanation-1: -All money is a decimal value with two places. You will see examples including $1.25, $65.98, and $26.34. No matter how big the value gets, you can only have two decimal places.

Detailed explanation-2: -Money values are stored significant to two decimal places. These values are rounded to their amounts in dollars and cents or other currency units on input and output, and arithmetic operations on the money data type retain two-decimal-place precision.

Detailed explanation-3: -Rounding a decimal number to two decimal places is the same as rounding it to the hundredths place, which is the second place to the right of the decimal point. For example, 2.83620364 can be round to two decimal places as 2.84, and 0.7035 can be round to two decimal places as 0.70.

Detailed explanation-4: -Most currencies have two decimals. Some currencies do not have decimals, and some have three decimals. For example: 10 GBP: GBP has two decimals, so in minor units submit an amount of 1000.

Detailed explanation-5: -The US and Canadian dollar can’t be transacted with more than 2 decimal places. When numbers represent money, we use rounding to replace an un-representable, un-transactable money amount with one that represents a cash tender.