Answer:
(C) taking advantage of economies of scale
Step-by-step explanation:
The functions of financial intermediaries include aggregating small investment sums into large capital and investing in financial assets. While small investors are restricted from investing in choice investment assets or have to pay very high to invest in such assets due to the limited sizes of their investment sums, financial intermediaries offer the benefit of investing in those restricted assets at minimal cost close. Financial intermediaries do this by taking advantage of economies of scale to negotiate better terms and lower cost for the small investors they represent.
Options A and B are incorrect as financial intermediaries tend to reduce investment fees to small savers and investors, lower than those investors would have paid it they invested in the assets themselves.
Option D is incorrect as many financial intermediaries invest in risky investments.