Islamic Banking and Finance Quiz

Islamic banking is banking or financing activity that complies with Sharia (Islamic law) and its practical application through the development of Islamic economics.

Some modes of Islamic banking/finance include Mudarabah (profit-sharing and loss-bearing), Wadiah (safekeeping), Musharaka (joint venture), Murabahah (cost-plus), and Ijara (leasing).

Sharia prohibits riba, or usury, generally defined as interest paid on all loans of money, and investment in businesses that provide goods or services considered contrary to Islamic principles.

<p>Investment in businesses that provide goods or services considered contrary to Islamic principles, such as pork or alcohol, is considered haram (sinful and prohibited).</p> Signup and view all the answers

<p>The prohibitions of Islamic banking have been historically applied in varying degrees in Muslim countries/communities to prevent un-Islamic practices.</p> Signup and view all the answers