Which of the Following Statements Is True About the Murabaha

question 25

Multiple Choice

Which of the following statements is true about the murabaha contract?

• A) Under the murabaha contract, when an Islamic bank lends money to a business it takes a share in the profits that are derived from the investment.
• B) Under the murabaha contract, money deposited in a savings account is treated as an equity investment in whatever activity the bank uses the capital for.
• C) The murabaha contract is widely used among the world's Islamic banks because it is the easiest to implement.
• D) The murabaha contract is a more efficient system than the Western banking system since it encourages both long-term savings and long-term investment.

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