If you go to an Islamic bank and ask for financing for following purposes, which financial product Islamic bank will most likely to use and why?10 years financing to start a new project5 years financing to construct a house on your land3 years financing for a heavy duty generator6 months financing for IPhone 12

Risk refers to the uncertainty associated with an event's outcome. In the finance industry, it…

Answered: If you go to an Islamic bank and ask…

If you go to an Islamic bank and ask for financing for following purposes, which financial product Islamic bank will most likely to use and why?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section: Chapter Questions

Problem 22AA

See similar textbooks

Related questions

Q: Which would be considered an investment according to economists? The purchase of newly-issued shares…

A: According to an Economist, Investment is capital formation when the individual allocates his/her…

Q: Savings, Investment Spending, and the Financial System- End of Chapter Problems 16. Sallie Mae is a…

A: a) Sallie Mae has engaged in securitization which is her packaging process. Because the likelihood…

Q: Paper currency is (a) Convertible (b) Partially convertible (c) Inconvertible (d) Both convertible…

A: # paper currency e is the most liquid form of money available in the financial market or the money…

Q: Which of the following statements is false? Group of answer choices A The economic reserves of a…

A: find below the answer.

Q: When a bank takes savings from many small savers and lends it to many borrowers, the bank…

A: The primary role of banks is to act as intermediaries between lenders and borrowers. Banks take in…

Q: Identify the term being referred to: A certificate of indebtedness with fixed interest rate and…

A: Corporate bond is the term being referred to in the question.

Q: In a scenario where market interest rates suddenly increase by 2%, for which bank will gap analysis…

A: Interest rate The market rate of interest is considered as a rate that is prevailing in the market…

Q: sports mortgage is the brainchild of Stadium Capital Financing Group, a company headquartered in…

A: Given that; Harold buys the mortgage of $50,000 and purchases the ticket for $290 for 50 years. The…

Q: How to give and explain thoroughly the most distinct difference between the operation of a…

A: A government is described as an institution that is entrusted with formulating the rules and…

Q: Suppose that a new customer opens a checking account and a saving account, placing $50,000 in each.…

A: n asset refers to the item of value which is owned and can be used to generate something. A bank…

Q: What has allowed financial institutions to increase the speed of financial transactions? increased…

A: We live in an era where you can make a payment at your local grocery store and see the fee appear on…

Q: Lower interest rates tend to lead to _______ spending by consumers and businesses, while higher…

A: Consumption spending and business spending depend on interest rates

Q: ou run an oil company that wants to extract an oil reserve. The total stock of oil in the reserve is…

A: Given information Total stock of oil=600 barrels Time period = t1 and t2 Quantity= q1+q2=600 Demand…

Q: The economic of quarter illegal currently has a level of M2 $100000. If saving is 20000 dollars and…

Q: Pakistan there is currently a pensions crisis because the government did not plan pensions of public…

A: Answer 1) The Pension crisis in Pakistan is because of the decline in the ratio of workers to…

Q: When consumers and businesses have greater confidence that they will be able to repay loans in the…

A: The rate of interest is the main reason that determines the quantity of savings and investment in…

Q: If a firm earns $375 billion in profits for the year and they retain $218 billion, how much do they…

A: Dividends means that amount which company pay to its stockholder after deduction of its cost and…

Q: Which of the following statements is correct? Question 24 options: A corporation receives a…

A: please find the answer below.

Q: An increase in the taxes on the return from capital will O increase desired investment. increase…

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…

Q: If the supply of financial capital increases Interest rates will remain unchanged. Interest…

A: Interest rate is determined by the demand and supply of financial capital.

Q: Assume that a bond was bought for $500 and is now sold for $450. The interest (yield) on that bond…

A: There is an inverse relationship between interest rate and bond prices. This is because when the…

Q: Congratulations! You have been hired by a consulting company to work as a junior financial…

Q: When you take a vacation and keep cash with you in case you might need it, money is serving as a:…

A: Money is any commodity or verifiable record that is widely accepted in a certain country or…

Q: If you go to an Islamic bank and ask for financing for following purposes, which financial product…

A: The Islamic banking system is different from the rest of the world's banking system. It prohibits…

Q: Countries that have good financial intermediaries: have savings that are used less effectively.…

A: In most cases, financial intermediates function as middlemen in transactions involving banks or…

Q: In developed countries like the US, where people plan their own pensions this planning for…

A: The permanent income hypothesis is a theory that states that people's consumption patterns depend on…

Q: What is Tesla Inc. in 2018 all about?

A: Introduction Elon Musk, Tesla's Chairman and CEO, tweeted on August 7, 2018, that he was…

Q: Fund A has a front-end load of 5.75%. You are considering an investment of $30,000. How much will…

A: front-end load rate = 5.75% Investment = 30,000

Q: What are the sources of money for company investments? The sale of stocks The sale of bonds Loans…

A: The capital is an important factor that is required for a company to start its operation. The…

Q: Briefly describe and explain the following investments terms. a) Treasury Bills b) Investments c)…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Many countries have policies that limit how much interest a moneylender can charge on a loan. Do…

A: Interest rate is considered as the borrowing cost because the person who is borrowing money has to…

Q: There’s no penalty for withdrawing funds from investments before they mature. True or false

A: When a depositor withdraws funds or closes out a time deposit before the maturity date, an early…

Q: If borrowers have greater confidence that they will be able to repay in the future,…

A: Financial capital is defined as an economic resource that is measured in terms of money and is used…

Q: Identify each of the following acts as representing either saving or investment. a. Lan uses some of…

A: An entity or organization that is being engaged in activities of professional, commercial, or…

Q: Assume that your rich aunt has given you $25,000 in a gift. You have come up with three ways to…

Q: Of the items listed in the table above, are there any items that cost more than one-and-one-half…

A: The measure that depicts the cost of a basket of services and goods being purchased by consumers is…

Q: Determine the key reasons why a multinational corporation might decide to borrow in a country such…

A: The interest rate parity theorem suggests that the cost of offsetting exchange risk eliminates the…

Q: If signs of an economic slowdown abroad and domestically do materialize, what would be your…

A: Economic Slowdown: It is a regular phase of a economic cycle where the economic growth of a country…

Q: If you deposit $10,000 in a bank for 2 years at an interest rate of 5%, then the future value of…

A: here we calculate the Future value of the deposit by using the given information and choose the…

Q: Which of the following is a true statement? Multiple Choice ___ If interest rates fall, U.S.…

A: Interest rate and bonds value have inverse relation with each other. When the interest rate rises,…

Q: If you go to an Islamic bank and ask for financing for following purposes, which financial product…

A: Banking sector collect the deposit from the customer and collect all th saving and use this saving…

Q: Suppose Yakov would like to use $8,000 of his savings to make a financial investment. One way of…

A: Bonds refer to high-security debt instruments that enable an entity to raise funds and fulfil…

Q: f you go to an Islamic bank and ask for financing for following purposes, which financial product…

A: These financial products are based on certain principles and rules to avoid Haram as sharia law…

Q: Diane initially deposited $10,500 into a money market account and made no additional deposits or…

A: Present Amount = 10,500 Future Value at the end of year 1 = 10,900 What is the annual growth rate?…

Q: The Kelowna Go-Kart Klub has decided to build a clubhouse and track five years from now. It must…

A: Write the formula used for calculation as follows: Amount = Amount to be accumulated/ (F/A, I,n)

Question

If you go to an Islamic bank and ask for financing for following purposes, which financial product Islamic bank will most likely to use and why?

10 years financing to start a new project
5 years financing to construct a house on your land
3 years financing for a heavy duty generator
6 months financing for IPhone 12

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.