What context can I use each word in?
Learn when and how to use these words with these examples!
convertibility
Example
The convertibility of the US dollar into other currencies makes it a popular choice for international trade. [convertibility: noun]
Example
The company's convertible bonds allow investors to convert their debt into equity shares. [convertible: adjective]
fungibility
Example
Gold is a fungible commodity because one ounce of gold is interchangeable with another ounce of gold. [fungible: adjective]
Example
The bank's fungible certificates of deposit can be easily traded for other certificates of the same value. [fungible: adjective]
Good things to know
Which word is more common?
Convertibility is more commonly used than fungibility in everyday language, especially in the context of international trade and finance. Fungibility, on the other hand, is a technical term used mainly in commodity trading and financial markets.
What’s the difference in the tone of formality between convertibility and fungibility?
Both convertibility and fungibility are technical terms used in finance and economics, and are therefore more formal in tone than everyday language.
