The following are the loans granted by a commercial bank to different categories of individuals. Use the information to answer the questions that follow: Ba...
Question 1 Report
The following are the loans granted by a commercial bank to different categories of individuals. Use the information to answer the questions that follow: Bankers $8,000, Farmers $8,000, Miners $7,000, Retailers $5,000, Tailors $4,000 Teachers $6,000, Drivers $4,000, Fishermen $3 000.
(a) Arrange the information in the form of a table grouping the individuals into: (i) Primary sector; (ii) Secondary sector; (iii) Tertiary sector.
(b) Express the loan to each sector of a ratio of the total loan granted
(c) Present the total loans granted to the sectors in a simple bar chart, (Use of graph sheet is essential)
Answer Details
(a) Grouping of borrowers by sector of production. The primary sector extracts raw materials from nature; the secondary sector processes them into finished goods; the tertiary sector renders services.
| Sector | Individuals | Loan ($) |
|---|---|---|
| Primary | Farmers, Miners, Fishermen | 8,000 + 7,000 + 3,000 = 18,000 |
| Secondary | Tailors | 4,000 |
| Tertiary | Bankers, Retailers, Teachers, Drivers | 8,000 + 5,000 + 6,000 + 4,000 = 23,000 |
| Total | 45,000 |
(b) Loan to each sector as a ratio of the total loan (total = \(\$45,000\)):
- Primary : \( \dfrac{18000}{45000} = \dfrac{2}{5} \)
- Secondary : \( \dfrac{4000}{45000} = \dfrac{4}{45} \)
- Tertiary : \( \dfrac{23000}{45000} = \dfrac{23}{45} \)
Combined, the ratio Primary : Secondary : Tertiary \(= 18 : 4 : 23\).
(c) Bar chart. On a graph sheet, place the three sectors on the horizontal axis and the loan amount (in $) on the vertical axis, choosing a scale such as \(2\text{ cm} = \$5,000\). Draw three separate bars of equal width but unequal height: Primary up to 18,000, Secondary up to 4,000 and Tertiary up to 23,000. Title the chart and label both axes clearly.
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