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Questions and Answers
Hawala banking has a recent history with origins in the 19th century.
Hawala banking has a recent history with origins in the 19th century.
False
The primary purpose of hawala banking was to physically transfer cash between merchants.
The primary purpose of hawala banking was to physically transfer cash between merchants.
False
The term 'hawala' is derived from the Hindi word meaning 'exchange'.
The term 'hawala' is derived from the Hindi word meaning 'exchange'.
False
Hawala banking was exclusively used by European traders during the Middle Ages.
Hawala banking was exclusively used by European traders during the Middle Ages.
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After the independence of many Asian and African countries, hawala banking became obsolete.
After the independence of many Asian and African countries, hawala banking became obsolete.
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The spread of hawala banking system was limited to South Asia only.
The spread of hawala banking system was limited to South Asia only.
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Hawala banking is recognized as illegal in many countries because it is easy to regulate.
Hawala banking is recognized as illegal in many countries because it is easy to regulate.
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The United Kingdom allows hawala banking only if it does not comply with laws and regulations.
The United Kingdom allows hawala banking only if it does not comply with laws and regulations.
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Hawala is mainly used by immigrants due to its high fees and slow transactions compared to the regular banking system.
Hawala is mainly used by immigrants due to its high fees and slow transactions compared to the regular banking system.
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Hawala banking is considered a modern financial tool for many communities and economies.
Hawala banking is considered a modern financial tool for many communities and economies.
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Hawala bankers have higher overhead costs than formal financial institutions like banks.
Hawala bankers have higher overhead costs than formal financial institutions like banks.
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The main reasons for using Hawala banking do not include beneficial exchange rates and faster transactions.
The main reasons for using Hawala banking do not include beneficial exchange rates and faster transactions.
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Currency controls by Central Banks do not impact the use of Hawala banking.
Currency controls by Central Banks do not impact the use of Hawala banking.
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Hawala banking is mainly associated with legal activities worldwide.
Hawala banking is mainly associated with legal activities worldwide.
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Traditional banking systems are always safer for money transfers compared to Hawala banking.
Traditional banking systems are always safer for money transfers compared to Hawala banking.
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The Western world considers it a low risk to do business with financial institutions in certain countries.
The Western world considers it a low risk to do business with financial institutions in certain countries.
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