Ijarah Financing Is a Growing Area for Islamic Financing

question 18

Multiple Choice

Ijarah financing is a growing area for Islamic financing?
An Ijarah contract is:

• A)A contractual arrangement whereby the bank finances the high-purchase of an asset which reverts to the bank at the end of the higher purchase arrangement
• B)A contractual arrangement whereby the bank buys some form of durable asset and leases it to the customer for a rental payment based on a prearranged schedule
• C)An insurance policy protecting the customers against loss or damage to a durable asset.
• D)A contractual arrangement whereby the bank purchases an asset for a deferred delivery date in exchange for immediate payment.

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Definitions:

Recordkeeping

The systematic process of maintaining records for financial transactions and other business activities.

Custody of Assets

Responsibility for safeguarding and managing physical or digital assets, ensuring their security and proper use.

Automated Sales Systems

Technology-driven systems designed to streamline the sales process, often involving automated customer interactions, order processing, and data analysis.

Bond Employees

A bond for employees, often called fidelity bond, is an insurance policy that protects the employer against financial loss due to the fraudulent activities of an employee or group of employees.