QUESTION NINE  The best statement that explains the differences between Islamic and conventional bank is     A ) in the modern banking system, it has become one of the service-oriented functions of all banks to pay out zakat as their social responsibility.     B ) Islamic bank promotes risk-sharing between the provider of

MACROECONOMICS FOR TODAY
10th Edition
ISBN:9781337613057
Author:Tucker
Publisher:Tucker
Chapter15: Money Creation
Section: Chapter Questions
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QUESTION NINE 

The best statement that explains the differences between Islamic and conventional bank is


 

 

A ) in the modern banking system, it has become one of the service-oriented functions of all banks to pay out zakat as their social responsibility.


 

 

B ) Islamic bank promotes risk-sharing between the provider of capital and the user of funds. In contrast, the fund provider of the conventional bank is assured of a predetermined rate of interest.


 

 

C ) both conventional and Islamic banks aim to maximize profit but are subject to different restrictions.


 

 

D ) the functions and operating modes of Islamic banks are based on Shari’ah and manmade principles.

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