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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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