BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Al bay
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Al wakalah
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Al dayn
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Al ujr
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Detailed explanation-1: -In certain cases, exporters may seek out a third party-typically a bank-to guarantee payment of a bill of exchange drawn on the importer. The process of a third party endorsing the back of a bill of exchange is called Avalisation, and can be utilized at the exporter’s request in situations where risk is high.
Detailed explanation-2: -Bay al-dayn means the sale of debt. It is a controversial sale contract in many of its application for economic activities because it involves the sale of a subject matter which is considered by most jurists as ribawi (riba-bearing), i.e., debt is considered as similar to money.
Detailed explanation-3: -What Is At Sight? At sight is a payment due on demand where the party receiving the good or service is required to pay a certain sum immediately upon being presented with the bill of exchange. This type of payment is also known as a “sight draft” or a “sight bill."