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fungible

adjective

/ˈfʌn(d)ʒɪbl/

IPA:

Dictionary definition of fungible

Interchangeable or replaceable with something of equal value or quantity.
"Gold is a fungible asset because it can be easily exchanged for cash."

Detailed meaning of fungible

In fungible items, individual units are essentially indistinguishable and can be exchanged or substituted for one another without any loss of value or quality. For example, money is a fungible asset because one dollar bill can be swapped for another of the same denomination, and they have the same value. Similarly, common commodities like oil, grain, or gold are often considered fungible because one unit or quantity is identical in value and quality to another. Fungibility is an essential concept in economics and finance, as it underpins the fluidity of markets and the ease of trade and exchange for items that share this property of interchangeability.

Example sentences containing fungible

1. Money is a fungible asset because one dollar is interchangeable with another.
2. The company's stocks are considered fungible, allowing for easy trading.
3. In a barter system, goods are not as fungible as currency.
4. Cryptocurrencies are often viewed as fungible digital assets.
5. Gold bars are fungible, with each one having the same value.
6. Shares of a mutual fund are fungible investments.

History and etymology of fungible

The adjective 'fungible' traces its etymology to the Latin word 'fungibilis,' derived from 'fungi,' meaning 'to perform' or 'to execute.' In its original sense, it referred to items or goods that were interchangeable or capable of being used in exchange for one another. Over time, this concept evolved to represent items that are replaceable with something of equal value or quantity. In modern usage, 'fungible' typically describes assets or commodities, such as money, where each unit is considered equivalent and can be substituted for another without loss of value. This term is commonly used in economics and finance to discuss items that are easily interchangeable or replaceable in transactions and markets.

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Further usage examples of fungible

1. Fungible resources can be used interchangeably in a production process.
2. The company's bonds are fungible, making them easy to buy and sell.
3. In a game of poker, chips are fungible and represent a player's bets.
4. Grain is a fungible commodity traded on the futures market.
5. Digital tokens in a video game are fungible and can be exchanged for in-game items.
6. The airline's frequent flyer miles are fungible and can be used for various flights.
7. In a car rental agency, rental cars are fungible assets that can be assigned to different customers.
8. Fungible goods like oil are often stored in large tanks for easy distribution.
9. Fungible assets simplify accounting and financial transactions.
10. The supermarket's gift cards are fungible and can be used at any branch.
11. Coupons are fungible when they offer discounts on various products.
12. A key characteristic of money is that it's fungible and can be used for various purchases.
13. When trading in a cryptocurrency exchange, tokens are fungible and can be swapped for others.
14. The company's raw materials are fungible, allowing for flexible production schedules.
15. In a warehouse, fungible goods are stored together for efficiency.
16. Some cryptocurrencies, like Bitcoin, are considered more fungible than others due to their anonymity features.
17. Fungible assets are essential for liquidity in financial markets.