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Scholastic realism is a type of moderate realism. As such, it falls between platonism and nominalism on the issue of universals. Universals, strictly speaking, only exist in minds, but they are founded on real relations of similarity in the world. Scholastic realism goes beyond moderate realism and affirms that universals also exist transcendently; but instead of having a separated existence, transcendent universals exist in God's mind. This work argues that moderate realism is implied by the correct analysis of predication and persons, and that Scholastic realism, in particular, is implied by the correct analysis of knowledge, truth, and right action.