What Does Fungible Mean?

Fungible is a term used to describe something that can be exchanged for an equal value of the same item. It is most commonly used in economics and finance, but it also applies to other areas such as law and philosophy. In economics, fungibility refers to goods or services that are interchangeable with each other because they have the same value regardless of who owns them. For example, money is considered a fungible asset since one dollar has the same purchasing power no matter who holds it.

In legal terms, something is said to be “fungible” when two items are so similar that they can replace each other without any loss of quality or quantity. This means that if someone owes you $100 and pays you back with two $50 bills instead, then those two bills would still fulfill their obligation even though they weren’t exactly what was owed originally. Fungibility also applies in contracts where parties agree on certain conditions which must be met before either party receives payment; these conditions may include substituting different assets for ones specified in the contract as long as both sides agree upon them being equivalent values.

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