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Intermediation: meaning, definitions and examples

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intermediation

 

[ ˌɪntərˈmidiˌeɪʃən ]

Noun
Context #1 | Noun

business transactions

Intermediation refers to the process by which intermediaries facilitate transactions between parties, typically in a business context. This can involve brokers, agents, or any other entities that act as a middleman. The goal of intermediation is to simplify exchanges and provide more efficient access to services or products.

Synonyms

brokerage, facilitation, intervention, mediation

Examples of usage

  • The intermediation of the real estate agent helped us find our new home.
  • Financial intermediation is crucial for transferring funds from savers to borrowers.
  • The company specializes in intermediation between manufacturers and retailers.

Etymology

The term 'intermediation' originates from the Latin word 'intermedius', which means 'being in the middle'. The prefix 'inter-' signifies 'between', while 'medius' refers to 'middle'. The word began appearing in English in the late 19th century, primarily in business and finance contexts, to describe the actions of brokers and agents acting as intermediates in transactions. As economies expanded and the complexity of transactions increased, the concept of intermediation gained prominence, leading to its widespread use in various fields, including finance, commerce, and communication. The practice of intermediation has been essential in creating efficient markets by enabling information flow and resource allocation.

Word Frequency Rank

Positioned at #23,945, this word is part of extensive vocabulary. It's relatively rare in general usage but may be important in specific fields or formal writing.