A Major Distinction Between a Conventional Bank and an Islamic

question 68

Multiple Choice

A major distinction between a conventional bank and an Islamic bank is that Islamic banks

• A)are allowed to charge higher interest rates on loans.
• B)cannot accept private deposits.
• C)cannot pay or charge interest.
• D)are not subject to any form of law.
• E)are supposed to refrain from making a profit through any source.

---

Definitions:

Binding

Implies an agreement, contract, or legal decision that is enforceable and must be adhered to by the parties involved.

U.S. Constitution

The supreme law of the United States, outlining the national frame of government and the fundamental rights of citizens.

Foundation

An entity established to provide support (often financial) for charitable, educational, religious, or other activities serving the public interest.

State Appeals Court

A court that reviews decisions made by lower courts and determines whether legal errors were made during the trial process.