What Makes a ‘Fungible’ Item Special?

Fungible items are like building blocks, you can swap them for others and still get the same result. Think of dollar bills: one is just as good as another when you’re buying candy. If you have a 10 bill, it’s the same as ten1 bills. No magic involved, just simple rules that make trading easier.

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Examples

A chocolate bar from one store is the same as a chocolate bar from another store, both are fungible.
If you trade your 1 coin for another1 coin, nothing changes, they're fungible.
When you buy two pencils with one dollar, that dollar is still just as valuable as before.

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Categories: Economics · fungibility· economics· money· commodities