Which of the following correctly describes a 'Murabaha' transaction in Islamic Finance?

Test yourself: pick an answer

• A)A lease agreement where the ownership of the asset is transferred at the end of the term
• B)A joint venture where both parties contribute capital and share profits and losses
• C)A sale where the seller expressly mentions the actual cost of the commodity and sells it to the buyer by adding a mutually agreed profit margin
• D)An interest-free loan provided to a business in distress