What is a fungible item?

Definition of Fungibles. Fungibles are items that are interchangeable because they are identical to each other for practical purposes. Goods, securities, and financial instruments may be fungibles. If goods are sold by weight or number, then they are probably fungible goods.

Is money fungible or non-fungible?

Like goods and assets that are not interchangeable, such as owned cars and houses, are non-fungible. Money is a prime example of something fungible, where a $1 bill is easily convertible into four quarters or ten dimes, etc. Fungibility implies that two things are identical in specification, where individual units can be mutually substituted.

Is land a fungible asset?

Assets like diamonds, land, or baseball cards are not fungible because each unit has unique qualities that add or subtract value. In finance and investing, commodities, common shares, options, and dollar bills are examples of fungible goods. The term "fungible" is not identical with barter or liquidity.

What is the difference between fungibility and non-fungibility?

The line between fungibility and non-fungibility may be a thin one. Gold is generally considered fungible (one gold ounce is equivalent to another gold ounce), though in some cases, it is not. When otherwise fungible goods are given serial numbers or other uniquely identifying marks, they may no longer be as fungible.