Question
The Islamic financial system is grounded on the following basic principles (ALL Except) : a. Risk sharing the terms of financial transactions need to reflect
The Islamic financial system is grounded on the following basic principles (ALL Except) :
a.
Risk sharing the terms of financial transactions need to reflect a symmetric risk/return distribution that each participant to the transaction may face.
b.
Shareholder returns are not a criteria for judging success.
c.
No exploitation a financial transaction should not lead to the exploitation of any party to the transaction.
d.
No financing of sinful activities such as the production of alcoholic beverages.
e.
Materiality a financial transaction needs to have a material effect, which is directly or indirectly linked to a real economic transaction.
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