FUNGIBLE

Recognized as being uniform, exchangeable, and a worthwhile substitute. Applies in the economy as cash for cash, corn for corn, and gold for gold. Any commodity to be traded on a commodity exchange must be exchangeable. If two manufactured goods are treated as commodities, they can only compete on price and/or availability. As an example, even if bought at different prices on different dates, shares of a firm are exchangeable.

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Categories: F