Fungible (Noun)
Meaning
A commodity that is freely interchangeable with another in satisfying an obligation.
Classification
Nouns denoting man-made objects.
Examples
- Currencies like dollars and euros are considered fungible assets, meaning that one dollar can be substituted for another dollar.
- Crude oil is a fungible commodity, making it easy to buy and sell without concern for its specific origin.
- Because diamonds are fungible, their quality and value are the only distinguishing characteristics.
- Shares of a particular company are considered fungible, meaning that any one share can be substituted for another share.
- Since gasoline is a fungible product, suppliers can source it from multiple locations to fulfill an order.