When a Bank Takes Savings from Many Small Savers and Lends

When a bank takes savings from many small savers and lends it to many borrowers, the bank:

A) decreases the risk to savers through diversification.
B) increases the risk to borrowers through high transaction costs.
C) decreases the risk to savers through economies of scale.
D) decreases the return to savers and increases the cost to borrowers.