Why is money called a pound?

Answer 1

The original coinage was in pennies, halfpennies and farthings (quarter pennies). Gradually inflation meant that more and more pennies were needed to buy even smallish items. 240 of those pennies weighed one pound so 'a pound of pennies' was soon abbreviated to 'a pound' and paper notes with a value of one pound (£) were introduced. 240 pennies to one pound continued to be used until 1971 when the British currency was decimalized.

Answer 2

In the Anglo saxon period, about 1200 years ago, the normal currency was a penny and everything was priced in pennies or parts of a penny. 240 pennies weighed 1 pound so as prices increased over the years, a pound of pennies was needed more often. Eventually, banknotes were issued in £1 pound denomination which was still worth 240 pennies. There continued to be 240 pennies in a pound until 1971 when decimalisation was introduced. The pound was retained, but was now split into 100 pennies instead of the original 240.