fungible   [fuhn-juh-buhl]

--adjective

1. Returnable or negotiable in kind or by substitution, as a quantity of grain for an equal amount of the same kind of grain.


2. Interchangeable.

Example
Regarding the bonuses Morgan Stanley gave out to its advisors while taking their share of the bailout money:

James Wiggins, a Morgan Stanley spokesman, said that such payments were necessary and would come out of operating revenue, not government bailout funds.

Since money is fungible, this comment doesn't make any sense.

I thought "fungible" meant that an object was edible to a fungus. Go figure.