A conventional bond is a debt instrument.The issuer owes the investor an amount of money consisting of both the principal and interest payment.Such instruments are not allowed under shariah because?
A) The interest element of the bond contravenes 'sunna'
B) The interest element of the bond contravenes 'riba'
C) The interest element of the bond contravenes 'gharar'
D) All of the above are true
Correct Answer:
Verified
Q28: The modern Islamic banking movement began with
Q29: To highlight the growing importance of Islamic
Q30: Which of the following is not seen
Q31: Which of the following is true for
Q32: The main reason for Islamic banks suffering
Q34: A construction company is looking at a
Q35: Ijarah represents what percentage of total Islamic
Q36: The main difference between 'takaful' and conventional
Q37: A 'Sukuk' or Islamic bond differs from
Q38: Which of the following describes Ijarah ?
A)An
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents