Answered: Suggest 2 financial instruments or…

Suggest 2 financial instruments or tools of Islamic financial economics that you think can help to reduce the burden of economic difficulties during the current crisis of COVID-19 pandemic. Explain.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter4: Exchange Rate Determination

Section: Chapter Questions

Problem 4BIC

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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.

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1. Suggest 2 financial instruments or tools of Islamic financial economics that you think can help to reduce the burden of economic difficulties during the current crisis of COVID-19 pandemic. Explain.

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