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Questions and Answers
What does Wadia'h mean in the context of Islamic finance?
What does Wadia'h mean in the context of Islamic finance?
- Sharing profit with the bank
- Interest-free loans from the bank
- Safekeeping or depositing something with someone who is not the owner (correct)
- Investing money in a bank
What is the main benefit for customers under the Islamic scheme of savings and current account?
What is the main benefit for customers under the Islamic scheme of savings and current account?
- No risk of loss on their deposits
- Access to interest income from conventional banks
- Interest-free safekeeping services for their money (correct)
- Guaranteed high returns on their deposits
What authority does the bank have over customers' deposits under Al Wadia'h?
What authority does the bank have over customers' deposits under Al Wadia'h?
- To charge interest on the deposits
- To invest the deposits in risky ventures
- To withhold the deposits indefinitely
- To use the deposits and guarantee to return them when needed (correct)
What is the customers' alternative to interest income from a conventional bank under Al Wadia'h?
What is the customers' alternative to interest income from a conventional bank under Al Wadia'h?
'Discharge the trust to the person who entrusts it to you and do not betray the one who betrays you' - Who is associated with this saying?
'Discharge the trust to the person who entrusts it to you and do not betray the one who betrays you' - Who is associated with this saying?
Which of the following best describes the typical maturities of Treasury Bills?
Which of the following best describes the typical maturities of Treasury Bills?
Why do Treasury Bills carry no default risk?
Why do Treasury Bills carry no default risk?
What is the primary source of yield for investors in Treasury Bills?
What is the primary source of yield for investors in Treasury Bills?
In a Repurchase Agreement (Repo), who is effectively the lender of funds?
In a Repurchase Agreement (Repo), who is effectively the lender of funds?
What characterizes the money market in terms of tenure for transactions?
What characterizes the money market in terms of tenure for transactions?
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