QUESTION "FOUR"

I. What is production.

Is the process of creating wealth. OR is the an activity that results in the creation of goods
and services for the satisfaction of human wants .

II. Tha following are highlight main types of production.

(a) Direct production.

Is the production of goods and services by an individual for his own use or consumption. For
example, a person constructs a house and then uses this house as his residence then this
construction process will be also considered as direct production.

(b) Indirect production.

Is the production of those goods and services which are produced by a person in order to sell
these goods to somebody else.for example, A man specialize in ensuring that the quality of a
product is standardized.

III. The following are mains levels/ stages of production.

(a) Primary production.

This is the first stage of production industries which are concerned with extraction of raw
materials (natural resources) directly from the earth crust. For example, workers are employed
in fishing, mining, forestry and farming.

(b) Secondary production.

This is second stage of production are industries concerned with changing the form of raw
material into finished goods by machines or hands. The out put of primary production is used as
input of secondary production.For example cotton produced in primary production is used in
the textile factories to produce cloth.
(C) Tertiary production.

This is the third stage production.This that assemble already manufactured goods into finished
product. For example house building(builders) use cement ,timber bricks, iron, glass and paint
which have been extracted and manufactured.

IV. Factors of production any commodity,some factors are needed and these are known as
factors of production.The following are the main factors of production that msimbazi industry
may need in in it's production activities.

(a) Land .
means all those factors which are given by nature free of cost to human beings like soil,
Sunshine,rainfall,rivers,seas . Land have some importance like provides site/ place for
production it's source of raw materiaos hand it's source of raw materials and it's a source of
power example, hydroelectric power. The following are features of land are:-

 It is a basic factor of production.

 Fertility of different pieces of land is different.
 Its supply is limited. Human beings cannot create more natural factors.

(b) Capital .

Is the means all those goods which are man-made and are helpful for further production for
example, Machines, tools roads ,building .capital have characteristics there are :-

 Capital increase efficiency of the other factors because it simplifies work.

 Capital can depreciate or it can become obsolete.
 Most of capital cannot work a lone without combination with other factor like labor .

(c) Labour .

Is the means any mental or physical efforts of human beings made for any material benifit.
Mental labour involves alot of brain work and minimum physical effort. For example, doctor or
an accountant . Physical labour involves more physical effort and less mental work. for example,
The work of a farm worker or a carpenter is physical labour. Labour have characteristics there
are:-

 Labor is the most mobile factor in both geographical and occupation senses.
 Labor is supplied only by living things especially human beings.
 Labor cannot have stored or reserved for later uses.
(d) Organisation.

Is the means to combine other three factors of production. for example: land, labour and
capital.The person who organises the business is know as organiser or entrepreneur. The
following are main functions of an entrepreneur:-

 To look after the production.

 To sell the product in the market.
 To take the responsibility of profit and loss.
 To pay the reward of land, labour and capital.

QUESTION " FIVE"

I. what is bank.

Is the institution which are involved in financial transaction such as mobilizing of saving,
provision of credits, accepting deposit and provides advice to the customer for example of Bank
in Tanzania . NBC, CRDB, NMB,TCB, Amana bank.
II. The following are main types of Bank that we have in Tanzania as well as their functions.

(a) Central bank;

Is the central banking system of all banks in Tanzania which has a function of directing other
types of banks in the country also the central bank which is also known as the BANK OF
TANZANIA (BOT) it has responsibility of controlling money supply in the country through
monetary and fiscal policies. The following are function of central bank like Tanzania:-

 To provide loans to the other banks and supervise the operation of the non-banks
financial like co-operative, insurance company.
 To make the national currency: inform of coins and notes.
 To formulate and supervise. To implementation of financial policies in the country.

(b) Commercial bank;

Is the financial institution deals with money and credit and established to end to gain profit.in
Tanzania commercial Banks include NMB bank ,CRDB bank, TCB bank Amana bank etc. The
following are function of commercial Banks like Tanzania:-

 Commercial Bank a collect money for its customers.

 Commercial Bank a provides financial advice to customers.
 Commercial bank stores money and jewels for customers.
 Commercial Bank advises the customer on business and investment matters.

(c) Co-operative banks.

These are formed to cater for the need of farmers especially assisting them with capital the
capital of co-operative bank is obtained through farmers and co-operative socitiea.for example
co-operative bank such as maendeleo co-operative bank, Kilimanjaro co-operative bank etc.
The following are functions of co-operative banks:-

 To lends money to members community.

 To keeps money for members of community.
  To assists formers with same farming advise.
 To assists members with transport facilities.

(d) Microfinance banks.

These are financial institutions that provide financial services to low in come individuals or
groups who are typically excluded from traditional banking. for example, Finca microfinance
Bank.

III. The following are contribution of banking sector towards the growth of different commercial
activities.

(a) To implementation of monetary policy.

The central bank of a country controls and regulates volume of credit through the active
cooperation of the banking system in the country.

(b) To provide counselling for customers.

Since banks have professional and specialized status, they are in a strong position to advice
entrepreneurs sustainable lines of investments by analyzing the cons of each investment as well
as management of investment of customers.

(c) To development of trade industry.

With growth of commercial banking in the 19 and 20 centuries there is vast expansion in trade
and industry. The use of bank draft, cheque, bill exchange , has revolutionized both national
and international .

(d) Provision of subsides.

The most of the commercial Banks provides subsides to different financial sectors inform of
loans with lower interests so as to attract different traders to lend money to them . This
situation helps most of financial sectors to have enough capital to develop their businesses.

(e) To development of agriculture.

The central banks, particularly in developing country for example country Tanzania is develop
country, are now providing credit for the development of agriculture and small scale industries
in rural areas.