Why Do Households Prefer to Use FIs as Intermediaries to Invest

Multiple Choice

Why do households prefer to use FIs as intermediaries to invest their surplus funds?

A) Transaction costs are low to the household since FIs are more efficient in monitoring and gathering investment information.
B) To receive the benefits of diversification that households may not be able to achieve on their own.
C) The FI can benefit from combining funds and negotiating lower asset prices and transaction costs
D) All of the listed options are correct.