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.

How do you pronounce fungible?

The “g” in fungible is pronounced like a “j” or like the “g” in “fudge,” though fungible things aren't always tasty. Fungible comes from a Latin phrase meaning “to serve in place of” and that's what something that's fungible does: serves in place of what it's exchanged for. Thesaurus. Definitions of fungible.

What is the difference between fungible and non-fungible assets?

Fungibility refers to an asset's ability to be exchanged for something else of equal value. Some examples of fungible assets include currencies, commodities, and precious stones. Non-fungible assets are unique, requiring much more complex valuation before a sale and include things like real estate, art, and sports cards.

What is fungibility in economics?

Fungibility is the ability of a good or asset to be interchanged with other individual goods or assets of the same type. Fungible assets simplify the exchange and trade processes, as fungibility implies equal value between the assets. Fungibility is the ability of a good or asset to be readily interchanged for another of like kind.