Intermediation for Dummies
noun
What does Intermediation really mean?
Intermediation is a big word, but don't worry, I'm here to help you understand it! Let's break it down together. Think about when you go to the grocery store and you want to buy some fruits. There's a person called a grocer who stands between you and the farmer who grows the fruits. The grocer is like a middleman or an intermediary who helps you get the delicious fruits you want without you having to directly go to the farmer's field.
So, the concept of intermediation is similar. It means there is someone or something that acts as a go-between or a middleman, helping two different parties connect and interact with each other. This can happen in various situations, not just in buying fruits!
For example, let's imagine you want to buy a book online. You go to a website like Amazon and choose the book you want. But Amazon is not the one who wrote the book or printed it. They are intermediaries who connect you, the buyer, with the authors and publishers who create and distribute the books. They make it easier for you to find the book you want and for the authors to reach potential readers like you! So, in this case, Amazon plays the role of intermediation.
Intermediation can also happen in the world of finance. Have you ever wondered how banks work? Well, banks are intermediaries between people who have money and want to lend it (like savers), and people who need to borrow money (like borrowers). Banks take your savings and lend it to someone else who needs it, making sure they pay it back with some interest. So here, the bank acts as an intermediary, helping connect savers and borrowers for the benefit of both.
Now, let's summarize what we've learned. Intermediation is when there is someone or something that acts as a middleman or go-between to help two different parties connect and interact with each other. Just like the grocer connects you with the farmer, or Amazon connects you with authors, intermediation helps people and things come together in different fields like business and finance.
I hope this explanation helps make the concept of intermediation clearer for you. Remember, if you have any more questions or need further clarification, don't hesitate to ask. Learning is all about asking questions and exploring new ideas!
Revised and Fact checked by Jane Smith on 2023-10-29 03:57:21
Intermediation In a sentece
Learn how to use Intermediation inside a sentece
- When you go to a store and give money to the cashier to buy something, the cashier is helping you by taking the money and giving you the item. This is an example of intermediation.
- If you want to send a message to your friend who lives far away, you can use a phone or the internet to send the message. The phone or the internet is helping you by delivering the message to your friend. This is an example of intermediation.
- When you want to buy a ticket to watch a movie in a theater, you usually don't go directly to the movie's production company to get the ticket. Instead, you go to a ticket counter or a website where they sell the tickets for you. The ticket counter or the website is helping you by selling the tickets on behalf of the movie's production company. This is an example of intermediation.
- If you want to buy a book from a famous author, you might not be able to meet the author in person to get the book directly. Instead, you go to a bookstore where they have copies of the book and sell it for you. The bookstore is helping you by providing the book on behalf of the author. This is an example of intermediation.
- Imagine you want to sell your old bicycle to someone who needs it. Instead of going around looking for buyers, you can take the bicycle to a second-hand store. The store will display your bicycle and find a buyer for you. The second-hand store is helping you by connecting you with someone who wants to buy your bicycle. This is an example of intermediation.
Intermediation Synonyms
Words that can be interchanged for the original word in the same context.
Intermediation Hypernyms
Words that are more generic than the original word.
Intermediation Hyponyms
Words that are more specific than the original word.