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Two bits. It refers to two pie-shaped eighths, or 'bits', of a silver dollar that was usually cut on a dollar cutting machine (banks had them) mainly used in the old west before they had nickels, dimes, and quarters to make change and buy goods. The guy asks the bartender, "How much for a shot of whiskey?" .... "Two bits." answers the bartender. The guy throws down two pie-shaped eighths of a silver dollar. Also the song 'jingle' "Shave and a haircut, two bits" refers to these same pieces of silver. You might note that the New York Stock Exchange still trades in eighths of a dollar even though no 12.5 cent coin was ever minted. The American Stock Exchange trades in tenths.

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Q: Where does the phrase Two Bits come from?
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