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Q2. A customer approaches an Islamic bank for financing of purchasing a motorcycle. Assume that the bank has only Diminishing Musharakah and Murabahah to offer

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Q2. A customer approaches an Islamic bank for financing of purchasing a motorcycle. Assume that the bank has only Diminishing Musharakah and Murabahah to offer him for financing. Upon initial scrutiny and information regarding the customer, it was known that the customer belong to an area where frequent snatching and car/motorcycle theft is common. Therefoe, there is a high risk that the motorcycle may be snatched/lost. Based on this background and on our discussion of the various Islamic financing products, which of the two financing products would you think the bank offer hi (i.e Diminishing Musharakah or Murabahah) briefly explain the reasons of your choice? (10 Marks) (Not more than one Page) Q2. A customer approaches an Islamic bank for financing of purchasing a motorcycle. Assume that the bank has only Diminishing Musharakah and Murabahah to offer him for financing. Upon initial scrutiny and information regarding the customer, it was known that the customer belong to an area where frequent snatching and car/motorcycle theft is common. Therefoe, there is a high risk that the motorcycle may be snatched/lost. Based on this background and on our discussion of the various Islamic financing products, which of the two financing products would you think the bank offer hi (i.e Diminishing Musharakah or Murabahah) briefly explain the reasons of your choice? (10 Marks) (Not more than one Page)

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