Mudarabah Accounts Are

question 41

Multiple Choice

Mudarabah accounts are:

• A)A profit sharing contract where the capital provider agrees to share the profits from an investment between themselves and the business owner in a prearranged ratio.
• B)A savings account which allows the bank to use the investors funds provided they obtain explicit permission to do so.
• C)A financing contract where the bank purchases an asset at a deferred delivery date in exchange for immediate payment.
• D)A profit and loss sharing contract where all parties to the contract pool their investments and take common ownership of investment assets in proportion to their initial stake.

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Definitions:

Reconstruction Finance Corporation

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Herbert Hoover

The 31st President of the United States, serving from 1929 to 1933, best known for his leadership during the early years of the Great Depression.

Smoot-Hawley Tariff

1930 act that raised tariffs to an unprecedented level and worsened the Great Depression by raising prices and discouraging foreign trade.

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