Debt- or Asset-Based Financing

question 56

Multiple Choice

Debt- or Asset-based financing:

• A)Is designed so that the bank purchases an asset that it then resells to the customer on credit.
• B)Is a system whereby the bank provides investment capital by purchasing debt instruments,which it then provides to a customer to be administered and managed by the customer.
• C)Is not allowed by Shariah.
• D)Forms less than 5% of the portfolio of a typical Islamic finance house.

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Definitions:

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