ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Financing instruments in Islamic finance consist of equity-like and debt-like instruments. Fixed claim instruments include murabaha, ijarah, salam, and istisna. Sukuk is an asset-backed trust certificate (bond) representing ownership of an asset or its usufruct (earnings) based on the principle of sharia.

Detailed explanation-2: -The characteristics features of Islamic banking are divinely sourced, shari’ah compliant banking system, rich with numerous financial concepts, riba (usury) free banking system, garar (uncertainty) free banking system, prohibits injustice, and enjoys benevolence in transactions.

Detailed explanation-3: -Some of these include Mudharabah (profit sharing), Wadiah (safekeeping), Musharakah (joint venture), Murabahah (cost plus finance), Ijar (leasing), Hawala (an international fund transfer system), Takaful (Islamic insurance), and Sukuk (Islamic bonds).

Detailed explanation-4: -The Islamic money market provides facilities for Islamic banks to manage their portfolio and funding. The financial instruments that are traded in the market are debt-trading instruments, such as Islamic debt securities and Islamic accepted bills.