Exchangeability

/ɪksˈtʃeɪndʒəˈbɪləti/ noun

Definition

The quality of being able to be exchanged; the degree to which something can be substituted for something else of equal value.

Etymology

From 'exchangeable' + -ity (noun-forming suffix). The -ity suffix transforms adjectives into abstract nouns measuring degree or quality, from Latin -itas.

Kelly Says

Money's entire power rests on exchangeability—as soon as people stopped trusting that currency could be reliably exchanged for goods or other money, whole economies collapsed, which happened repeatedly in history from ancient Rome to 1920s Germany.

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