Final answer:
The correct functional dependency for the table Loans with CustomerID, Branch, LoanNo, and LoanAmount, considering that each branch issues loans independently and customers may jointly make a loan, is LoanNo → (LoanAmount, Branch, CustomerID).
Step-by-step explanation:
The question relates to the concept of functional dependency in a database system, specifically focusing on a Loans table that includes the attributes CustomerID, Branch, LoanNo, and LoanAmount. Functional dependency plays a key role in the normalization process of database design, which impacts how financial transactions are tracked in banking systems.
Given that each bank branch can issue a loan independently, and customers may jointly make a loan, the correct functional dependency would likely be that LoanNo determines LoanAmount, Branch, and CustomerID. In other words, you would expect LoanNo → (LoanAmount, Branch, CustomerID) since each loan number (LoanNo) should uniquely identify a loan record, including the amount of the loan and the branch and customer(s) involved.
Banks act as financial intermediaries, and their role in the economy is essential for funding through loans. They manage a complex system where money, loans, and repayments flow in a continuous cycle, facilitating economic transactions, as depicted in various figures mentioned in reference materials.