PRC-3 · Chapter 4 · Question 61 of 65
Which of the following practices is strictly forbidden in the Islamic banking system, distinguishing it fundamentally from conventional commercial banking?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Paying or receiving Riba (interest)
Explanation
The prohibition of Riba (interest or usury) is the foundational principle of Islamic finance, which relies on risk-sharing and asset-backing instead.
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