This only applies for independent and identically distributed (iid) variables - or ones that are approximately so, and is the result of the Central Limit Theorem of statistics. According to it the mean of any set of iid variables is distributed as an approximate Gaussian distribution, with the same mean as the underlying data and a standard error which is proportional to 1/sqrt(n) where n is the number of observations. So, as the number of observations increases, the standard error of the estimated mean value of the variable decreases. Decreased variability = increased accuracy.
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No
No. Increasing is a verb form, and a noun form (gerund). The adverb is "increasingly."
In short, they do not. Relating tables in a database defines the relationships between the data sets in the different tables and allows the data to be accessed more efficiently, but it does not affect the accuracy of the data entered.
Increasing Naturally
First you must decide what is a "suitable degree of accuracy" for a particular problem. In many cases, 4 or 5 significant digits are appropriate, or even 3. But it depends a lot on the original data (the final result is not supposed to look more accurate than the accuracy you can justify from the original data), and the purpose of the data (in some cases you need a higher accuracy than in others).