Answered: 5. Suppose you need home financing.…

5. Suppose you need home financing. Which type of bank will you prefer? Islamic or conventional? Will you recommend Islamic banking to your friends and family? If yes, why? If no, why not?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter7: International Arbitrage And Interest Rate Parity

Section: Chapter Questions

Problem 1SBD

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Concept explainers

Functions of Financial Institutions

Financial institutions are businesses that are formed to deal with financial and monetary transactions. These organizations primarily accept deposits, advance loans, make investments, and provide foreign exchange services. Financial institutions include, but are not limited to, banks, insurance companies, trust companies, brokerage firms, and investment bankers. Because financial institutions play such an important role in the economy in terms of monetary transactions, regulating their activities has become a requirement for governmental authorities. As a result, the government creates a multitude of laws and regulations to oversee the activities of financial institutions.

Question

5. Suppose you need home financing. Which
type of bank will you prefer? Islamic or
conventional? Will you recommend Islamic
banking to your friends and family? If yes,
why? If no, why not?

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