_______________________is the amount appropriated by IIFS out of income of IAH, after allocating the Muḍārib share, in order to soften the effects of the risk of future investment losses on IAH

Question

Quizplus · Accepted Answer

An Investment Risk Reserve (IRR) is the amount set aside by Islamic Financial Institutions (IIFs) from the income of Investment Account Holders (IAH), after allocating the Mudarib's share, to mitigate the impact of potential future investment losses on IAH. This reserve acts as a financial buffer to protect the interests of the investors by absorbing future losses, thereby reducing the investment risk.

_______________________Is the Amount Appropriated by IIFS Out of Income of IAH