Fungible
/ˈfʌndʒɪbəl/
adjectiveC1
Definition
Fungible describes things that are interchangeable, meaning one item can be swapped for another exactly like it. For example, money is fungible because one dollar bill is the same as another dollar bill. This word is often used in law, business, and finance to talk about goods or assets that are not unique.
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See It in Action
Able to be exchanged or replaced by another identical item
- •The barrels of oil are fungible; one barrel is the same as another.
- •Currency is fungible, so you can use any bill to pay for something.
- •Stocks in the same company are fungible because each share has equal value.
In law and finance, referring to goods or assets that are interchangeable
- •The contract specified that fungible goods could be replaced without changing the agreement.
- •Fungible assets are easier to trade because they do not need special identification.
Make It Stick
- ✓Think of "fungible" like "replaceable," but specifically for things that are exactly the same and can be exchanged easily.
- ✓Picture a pile of identical coins; any one coin can take the place of another without difference.
- ✓It feels like when you lend a friend a pen, and they give you back any pen later—it does not have to be the same one.
- ✓Sounds like "FUN-ji-bull" → imagine a fun game where you swap identical cards with friends without caring which one you get back.
- ✓Think about money or sugar packets at a store—each unit is the same, so you can swap them freely.
- ✓NOT like "unique" (one of a kind), fungible means many things are exactly the same.
- ✓NOT like "collectible" (special or rare), fungible things have no special difference between them.
- ✓Fungible items are easy to exchange because their value and function do not change when swapped.
Try Other Words
- •Replaceable: able to be exchanged for something else (Use when the focus is on the ability to swap, but items might not be exactly the same)
- •Interchangeable: able to be used in place of each other (Use when talking about parts or items that fit the same purpose but might have small differences)
- •Exchangeable: able to be swapped or traded (Use when emphasizing the action of swapping rather than the item's nature)
Unboxing
- •Prefix: none; Root: "fung-" from Latin "fungi" meaning "to perform, to do"
- •Suffix: "-ible" meaning "able to be"
- •Origin: From Latin "fungibilis," meaning "able to perform or serve in place of another"
- •First used in English in the 17th century, mostly in legal and economic contexts
- •Today, used especially in finance and law to describe goods or assets that can be swapped without loss of value
Reflect & Connect
•How does understanding "fungible" help you think about money and trade in everyday life?
•Can you think of things that are NOT fungible? Why are they different?
Fill in the blanks
1.Money is fungible because you can ___ one bill for ___ without any problem.
2.Oil barrels are considered fungible goods since they have the same ___ and ___.
3.Unlike a painting, fungible items have no ___ or special features that make them unique.
4.When a contract mentions fungible goods, it means the goods can be ___ without changing the agreement.
5.Stocks in the same company are fungible because each share holds the same ___.
6.Fungible items are often ___ easily in markets due to their identical nature.
7.You cannot call a rare coin fungible because it has ___ value compared to others.