Islamic banks rely on the following two major sources of funds:

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	transaction deposits and accounts receivables
B	investment deposit and current accounts
C	accounts payable and investment accounts
D	transaction deposits and investment deposits

Explanation:

Detailed explanation-1: -Islamic banks rely on the following sources of funds: Capital & Equity; Transaction deposits that are risk free and yield no return; and. Investment deposits that carry the risks of capital loss for the promise of variable returns.

Detailed explanation-2: -There are basically two principal sources of funds, namely work capital of shareholders and customer deposits. A separate accounting system is adopted for a dual window banking operation, which separates all Islamic bank funds from conventional banking and to avoid the arrival of funds.

Detailed explanation-3: -Answer: The Islamic bank uses its funds in various trade, investment and service related Shariah compliant activities and earns profit thereupon. The profit earned from such activities is passed on to the depositors according to the agreed terms.

Detailed explanation-4: -Ijarah and Murabaha are the major modes of Islamic finance which are being used.

There is 1 question to complete.