A major distinction between a conventional bank and an Islamic bank is that Islamic banks
A) are allowed to charge higher interest rates on loans.
B) cannot accept private deposit.
C) cannot pay or charge interest.
D) are not subject to any form of law.
E) are supposed to refrain from making a profit through any source.

Question

Quizplus · Accepted Answer

Islamic banks operate under Sharia law, which prohibits the payment or receipt of interest (riba). Instead, they use profit-sharing and other interest-free financial instruments.

A Major Distinction Between a Conventional Bank and an Islamic