Which of the Following Is Seen by Many as a Key

question 31

Multiple Choice

Which of the following is seen by many as a key advantage of the principle of profit and loss sharing?

• A)The Islamic bank will have an interest in the success of projects it invests in,leading to a closer relationship between bank and entrepreneur.
• B)The Islamic bank reduces its exposure by sharing its losses with customers
• C)The Islamic bank is able to provide the community with funds for good causes.
• D)The bank takes no part in any decision making in respect of the management of the company.

Understand the concept and application of chaining in operant conditioning.

Understand the calculation and implications of bond duration and modified duration.

Recognize the effects of yield changes on bond prices.

Identify and apply different bond immunization and swap strategies in portfolio management.

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Definitions:

Standard Deviations

A calculation that shows how broadly or tightly a set of values is distributed.

Independent

Not influenced or controlled by others in matters of opinion, conduct, or other actions; free from external control.

Standard Deviations

Refers to the distance of a value from the mean in a dataset, indicating the variability within the data.

Standard Deviations

An indicator of the degree of spread or diversity among a collection of numbers, showing the extent to which these numbers deviate from their average value.