Reference no: EM132961625

Problem 1: The following are the features of Qard based deposit EXCEPT;

A) It will be returned by the borrower to the lender at the end of the agreed period at full amount, without incurring any extra amount.

B) It is based on Tawarruq which requires the customers to appoint the Islamic bank as an authorized agent.

C) The bank is entitled to use these deposited funds at its own risk without any authorization from the depositor.

D) The principal amount is guaranteed by the bank to the depositor even if there is negligence or loss from the side of the bank.

Problem 2: Mudharabah Muqayyadah is;

A) a form of contract where the capital provider restricts manager to a particular type of business or to a particular location.

B) is a form of contract whereby two (2) or more parties into a contract to exploit their labor and capital jointly and to share the profits & losses of the partnership.

C) is a form of contract where the capital provider does not restrict manager and give him full freedom in terms of capital administration.

D) is a form of contract of participation, whereby the funding party agrees to deliver a commodity or an asset at a pre-determined future time at an agreed pre-determined future time at an agreed price.