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Intermediation is when someone or something acts as a go-between or helper, connecting people or businesses that need something with those who can provide it. In the world of finance and real estate, this usually means banks or other institutions that help people borrow, save, or invest money.
Imagine you want to buy a house but don't have enough money. You go to a bank, which agrees to lend you the money. The bank gets this money from people who have deposited their savings. In this case, the bank is the intermediary, connecting you (the borrower) with the savers (the lenders).
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
In the land of money and trade,
Intermediation has it made.
A helper, connecting side to side,
Like a bridge where deals can glide.
Banks and institutions play the part,
Connecting savers, lenders, with heart.
Borrowers, too, they help unite,
Making dreams and goals take flight.
So when you need some help, you see,
Intermediation is the key.
A go-between, a trusted friend,
Making connections, start to end.