Final answer:
Agents and brokers serve as intermediaries with different durations of relationships; agents engage in long-term associations while brokers are employed temporarily. In the financial sector, banks act as intermediaries between savers and borrowers but do not connect them directly.
Step-by-step explanation:
The question posed is related to the distinction between agents and brokers in the context of intermediary roles. Agents typically maintain long-term relationships with their clients, such as an actor's agent who continuously works to pitch the actor to casting directors for various roles. In contrast, brokers often serve on a temporary basis, assisting with a specific transaction or set of transactions without an ongoing commitment to represent the parties involved.
Financial intermediaries, like banks, serve as a crucial example where banks act between savers and borrowers. Funds deposited into banks become part of a large pool, from which loans are extended to borrowers. Here, the bank's intermediary role ensures that individual savers and borrowers do not have to directly interact.
In terms of corporate finance, a firm may consider different means of borrowing money, such as through bank loans or by issuing bonds. A bank loan generally necessitates persuading a single financial institution while issuing bonds entails convincing numerous bondholders.