QUESTION NINE The best statement that explains the differences between Islamic and conventional bank is A ) in the modern banking system, it has become one of the service-oriented functions of all banks to pay out zakat as their social responsibility. B ) Islamic bank promotes risk-sharing between the provider of

QUESTION NINE The best statement that explains the differences between Islamic and conventional bank is A ) in the modern banking system, it has become one of the service-oriented functions of all banks to pay out zakat as their social responsibility. B ) Islamic bank promotes risk-sharing between the provider of

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter15: Money Creation

Section: Chapter Questions

Problem 6SQ

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QUESTION NINE

The best statement that explains the differences between Islamic and conventional bank is

A ) in the modern banking system, it has become one of the service-oriented functions of all banks to pay out zakat as their social responsibility.

B ) Islamic bank promotes risk-sharing between the provider of capital and the user of funds. In contrast, the fund provider of the conventional bank is assured of a predetermined rate of interest.

C ) both conventional and Islamic banks aim to maximize profit but are subject to different restrictions.

D ) the functions and operating modes of Islamic banks are based on Shari’ah and manmade principles.

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