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Mudarabah Accounts Are

Question 4

Multiple Choice

Mudarabah accounts are:


A) A profit sharing contract where the capital provider agrees to share the profits from an investment between themselves and the business owner in a prearranged ratio.
B) A savings account which allows the bank to use the investors funds provided they obtain explicit permission to do so.
C) A financing contract where the bank purchases an asset at a deferred delivery date in exchange for immediate payment.
D) A profit and loss sharing contract where all parties to the contract pool their investments and take common ownership of investment assets in proportion to their initial stake.

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