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Fungible: meaning, definitions and examples

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fungible

 

[ ˈfʌndʒəbl ]

Adjective
Context #1 | Adjective

economic term

Fungible refers to items or assets that can be easily exchanged or substituted for one another because they are of the same type and value. This concept is popular in economics and finance, particularly when discussing goods like currency or commodities. A common example is cash: one dollar bill can be exchanged for another without any difference in value or functionality. This interchangeability highlights the importance of fungibility in facilitating trade and investment, as well as its role in the functioning of markets.

Synonyms

interchangeable, replaceable, substitutable

Examples of usage

  • Cash is a fungible asset.
  • Stocks are often considered fungible.
  • Fungible goods are easy to trade.

Translations

Translations of the word "fungible" in other languages:

🇵🇹 fungível

🇮🇳 विनिमेय

🇩🇪 fungibel

🇮🇩 dapat dipertukarkan

🇺🇦 взаємозамінний

🇵🇱 fungible

🇯🇵 代替可能な

🇫🇷 fongible

🇪🇸 fungible

🇹🇷 değiştirilebilir

🇰🇷 대체 가능한

🇸🇦 قابل للتبادل

🇨🇿 fungibilní

🇸🇰 fungibilný

🇨🇳 可替代的

🇸🇮 fungibilen

🇮🇸 fungsjón

🇰🇿 алмастырымалы

🇬🇪 შეცვლადი

🇦🇿 dəyişdirilə bilən

🇲🇽 fungible

Etymology

The term 'fungible' stems from the Latin word 'fungibilis', which means 'that which is able to be done' or 'easily interchangeable'. The Latin 'fungi' means 'to perform' or 'to execute'. This term evolved over time in legal and economic contexts to describe goods or assets that can be freely exchanged. It gained prominence in the realm of finance to facilitate transactions and legal discussions about the nature of currency and goods. The idea of fungibility is crucial in modern economies, as it supports liquidity in markets and simplifies trade processes. The concept has broadened over the years to include digital assets in the age of cryptocurrency, where it influences discussions about digital currencies and even non-fungible tokens (NFTs) as a contrasting concept.

Word Frequency Rank

This word's position of #31,152 indicates it's among the more rare English words. While understanding it broadens your vocabulary, focus on more common words first.