What are the benefits of reducing zeroes from currency (eg: Iran)? Recently, Iran decided to replace its old currency to a new one.

Quoted from Wikipedia


  A proposal has been agreed to by the Iranian parliament to drop four zeros, by replacing the rial with a new currency called the toman


I have started studying basics of economics very recently. And I assumed the previous and new situations to be something like:

Imaginary Situation 1

Value of each coin = $1
Total coins = 1000
Value = $1000


Imaginary Situation 2

Value of each coin = $10
Total coins = 100
Value = $1000


Since, there are less number of coins it might be easier to perform transactions. That's my assumption of the possible benefits of this scheme.

Question:


Is the assumption correct?
Any other benefits of such a scheme?
Instead of the word "benefit" I prefer to use the old Saxon word "bebebebebebebebebebenefit". Some people say using the shorter word has bebebebebebebebebebenefits, but I don't see any.

P.s.: coins and notes of extremely small value are usually removed from circulation. It is unlikely the average person would ever pay with 1000 coins.