PRC-3 · Chapter 4 · Question 50 of 65
In Islamic banking, an arrangement where a bank provides all the capital and a client provides expertise and labor to run a business, sharing the profits at a pre-agreed ratio, is called:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Mudarabah
Explanation
Mudarabah is an Islamic profit-sharing partnership where one party supplies the capital (Rab-ul-mal) and the other supplies the managerial expertise (Mudarib).
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