Definition

The quality of being able to be exchanged or replaced with something else of equal value.

Example

The fungibility of money allows it to be easily exchanged for goods and services.

Conversation

Have you ever thought about the concept of fungibility in economics?

Not really, what does it mean?

It's about how certain goods can be exchanged for each other easily, like money.

Oh, that makes sense! So, all dollar bills are basically the same.

Synonyms & Antonyms

Root Explanation

Fungibility → It is formed from "fungibilis" (meaning interchangeable) and the suffix "-ity" (meaning the state or quality of). The word "fungibility" refers to the quality of being interchangeable or able to be replaced by another identical item.

Memory Tip

Think of items that are 'interchangeable' ('fungibilis') and remember that 'fungibility' describes the quality of being able to replace one item with another.

Visually Confused Words