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Financial Returns on Money Must Bear the Two Inseparable Features

question 110

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Financial returns on money must bear the two inseparable features of Islamic investing, i.e. fairness and profit.


Definitions:

Recipient Preferences

The specific likes or choices of individuals or entities that are targeted to receive something.

Utility

The total satisfaction received from consuming a good or service.

Noncash Gifts

Contributions or presents given in forms other than cash or currency, including physical goods, services, or other intangible assets.

Diminishing Marginal Utility

This refers to the economic principle that as a person increases consumption of a product, there is a decline in the marginal benefit that person gains from consuming each additional unit of that product.

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