Final answer:
An intermediary is the third party that a agent deals with when working on behalf of a principal, such as a bank in financial capital markets.
Step-by-step explanation:
An intermediary is the third party with whom the agent deals when working on behalf of the principal. They stand between the agent and the principal, facilitating the transactions and communications between the two parties.
In the context of financial capital markets, banks serve as intermediaries between savers who deposit funds and borrowers who receive loans. Banks pool the deposited funds and lend them out to borrowers, acting as intermediaries in the process.