What does it mean for someone to be fungible?
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.
What’s another word for fungible?
What is another word for fungible?
| exchangeable | switchable |
|---|---|
| negotiable | redeemable |
| returnable | substitutive |
| changeable | adjustable |
| modifiable | matching |
What is a fungible good?
(4) Fungible good or fungible material The term “fungible good” or “fungible material” means a good or material, as the case may be, that is interchangeable with another good or material for commercial purposes and the properties of which are essentially identical to such other good or material.
What is an example of fungibility?
Examples of fungible goods include oil, bonds, gold and other precious metals, money, and unopened items of consumer products on store shelves such as boxes of oatmeal or cereal. They possess fungibility if they have identical value and properties of other items.
What is the opposite of fungible?
Opposite of able to be substituted for something of equal value or utility. noninterchangeable. incompatible. unsubstitutable.
How do you use fungible in a sentence?
Fungible in a Sentence 🔉
- On the diet plan, the two vegetables are fungible so you can eat either one without changing your calorie count.
- The two automobiles are not fungible because one vehicle is worth more than the other vehicle.
Which is the best example of fungible good?
Commodities, common shares, options, and dollar bills are examples of fungible goods. Assets like diamonds, land, or baseball cards are not fungible because each unit has unique qualities that add or subtract value.
What is the best example of a fungible good?
What is fungible money?
A good is fungible if one unit of the good is substantially equivalent to another unit of the same good of the same quality at the same time, place, etc. Notably, money is fungible: one US $10 banknote is interchangeable with any other genuine banknote like it.
What is an example of a non fungible good?
Non-Fungible Goods Assets like diamonds, land, or baseball cards are not fungible because each unit has unique qualities that add or subtract value. For instance, because individual diamonds have different cuts, colors, sizes, and grades, they are not interchangeable, so they cannot be referred to as fungible goods.
How do you use fungible?
What is fungible item?
Fungible refers to items or commodities that can be exchanged with other assets or commodities of the same type. For example, currency is a fungible asset because it can be exchanged for other currencies, goods, or pay for services..
Which is the best definition of a fungible?
DEFINITION of ‘Fungibles’. Fungibles refer to goods, securities, or instruments that are equivalent and, therefore, interchangeable. In other words, they are goods that consist of many identical parts which can be easily replaced by other, identical goods.
When is fungibility not the same as liquidity?
Fungibility is not the same as liquidity. If something can be easily exchanged for money or another good it is liquid. Something is fungible if one unit of that product is substantially equivalent to another unit of the same product that has the same quality at a specific time and place.
Are there any assets that are not fungible?
Assets like diamonds, land, or baseball cards are not fungible because each unit has unique qualities that add or subtract value. For instance, because individual diamonds have different cuts, colors, sizes, and grades, they are not interchangeable, so they cannot be referred to as fungible goods. Real estate is never genuinely fungible.
What’s the difference between a painting and a fungible item?
In contrast, something like a painting isn’t fungible; a purchaser would expect a specific, identifiable item to be delivered. In broader use, “fungible” can mean “interchangeable” or sometimes “changeable, fluid, or malleable.”.