How Banks Create Money We always hear that banks create money and come to mind a banker with a magic wand and a cap. What is not so far removed from reality, moreover, is not only how banks create money, they also perform something similar to what Jesus Christ did with bread and fish, that is, a […]
Identify The Three Uses of Money
What is Money All that money is considered active or that is generally accepted as a means of payment and payment for transactions. On the contrary of what can be believed, money is not only the metals and papers we are accustomed to seeing as coins and bills respectively but all those kinds of assets that a community accepts as a means […]
What is Musharakah
What is Musharakah Musharakah is derived from the word “Shirkat” which means sharing. Musharakah is a very important investment mode of financing in an Islamic economic system. It is a scheme of shared risk financing in which two or more parties contribute capital and labor to a business. The profit is distributed to the partners […]
What is Mudarabah and its Types
What is Mudarabah ? In an Islamic system, there is no place for the capital to be given on interest. Capital is to be combined with skill and both are to work on profit and loss sharing basis. This arrangement in Halal business wherein capital is combined with knowledge […]
What is bill of exchange and its characteristics
What is bill of exchange and its characteristics According to Negotiable Instrument Act a Bill of Exchange is “An instrument in writing containing an unconditional order, signed by the maker directing a certain person to pay on demand or at a fixed or determinable future time, a certain sum of money only to, or to […]
