PRC-3 · Chapter 4 · Question 51 of 65
A core, fundamental principle that distinguishes Islamic banking from conventional banking is the strict prohibition of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Riba (interest)
Explanation
Islamic finance prohibits Riba, which means banks cannot charge or pay fixed interest on loans or deposits, relying instead on risk-sharing models.
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