BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Because they have a more active role against financial exclusion
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Because sustainable activities in general improve their financial conditions
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Because they are more focused on maximising value for all their stakeholders
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All the answers are correct
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Detailed explanation-1: -In the long-term, sustainable banking will help create the perception of a responsible business, address expectations of a more aware customer, conform to new regulations and create new business opportunities.
Detailed explanation-2: -In Conventional Bank, no such framework is present. Islamic Banks have strong Shariah governing framework in terms of Shariah Board, who approves the transactions and products in the light of the Shariah rulings. In Conventional Banks almost all the financing and deposit side products are loan based.
Detailed explanation-3: -In Islamic banking leasing, ownership remains with bank and risk and reward bear by the bank as owner of asset. In conventional banking, fixed rate of interest being given to depositors. In Islamic banking, profit are distributed out of profit earning by bank for the month as per decided weightages.
Detailed explanation-4: -In case of profit, both the Islamic bank and its customer share it in a pre-agreed proportion. In the case of loss, all financial loss is borne by the lender. In addition to this Islamic bank can’t create debt without goods and services to back it (such as physical assets including machinery, equipment, inventory).