Author Question: What is Islamic Banking? What will be an ideal response?[br][br][b][color=#347235]Question ... (Read 80 times)

asd123 · **on:** Jun 30, 2018

What is Islamic Banking?

What will be an ideal response?

Question 2

There is no limit for domestic central bank intervention.

Indicate whether the statement is true or false

nicoleclaire22 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Islamic law prohibits the charging of interest on loans. In Muslim countries, banks are not allowed to make traditional loans, but rather play their intermediary role by taking a predetermined percentage of the borrowing firm's profits until the loan is repaid. Therefore, in a sense, banks under Islamic Banking act as venture capitalists rather than traditional lenders.

Answer to Question 2

FALSE
Explanation: They can run out of reserves.