Word: fungible

Associations

Fungible refers to something that is interchangeable and can be replaced by another item of the same kind. This word is often used in finance and economics.

• In finance, cash is fungible because any amount of cash can be exchanged for another amount of cash without losing value.
• Goods like oil or gold are fungible because one barrel or ounce can be exchanged for another.
• In legal contexts, contracts may use the term to describe assets that can be substituted without affecting value.

A well-known synonym for fungible is "interchangeable." The key difference is that "interchangeable" is often used in a broader physical sense (like parts of machinery) while "fungible" is typically used for financial or economic items.

Substitution

Some alternative phrases you could use in place of "fungible" include:

• Replaceable: This means something can be exchanged, but it emphasizes the idea of taking out and putting in a new item rather than focusing on equal value.
• Interchangeable: This implies that items can be swapped without limitation, but it might not stress the value aspect associated with fungibility.
• Equivalent: This emphasizes equality in value, but is more general and can apply to a wider range of contexts beyond finance.

Deconstruction

The word "fungible" comes from the Latin root "fungi," which means "to perform" or "to execute." It implies that something can be used or fulfilled by another similar item. It is formed with no prefixes or suffixes, meaning it is a complete word on its own.

Inquiry

• Can you think of examples in your daily life where you encounter fungible items?
• How would your understanding of fungibility change if you were to apply it to services instead of goods?
• Have you ever had a situation where something you thought was fungible turned out not to be? What happened?