JAMB - Economics (2024 - No. 22)

Wholesalers play an important in the distribution of goods and services because they
are located very close to consumers
pass information on from retailers to consumers
sell in small units to consumers
finance both producers and retailers

Explanation

Wholesalers often provide financing to both producers and retailers. They offer credit facilities and trade financing options to producers, allowing them to maintain a steady production flow. Wholesalers also extend credit to retailers, enabling them to purchase goods in bulk and stock their inventory. By providing financing, wholesalers help facilitate th smooth flow of goods and services throughout the distribution chain.

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