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No, you can't tear a dollar bill in half and say its 50 cents.

MoreThe Treasury has specific rules for redeeming torn currency. If at least 2/3 of the bill is intact AND shows at least one of the two serial numbers, it can be redeemed at a bank for a replacement bill. If less that than is available, it may still be possible to have it replaced but you may have to submit a damaged-currency claim to the Bureau of Engraving and Printing.

The reason for the 2/3 (or sometimes 3/4) and serial number rules is to prevent people from tearing bills almost exactly in half and getting a replacement for each piece.

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