For any Islamic contract deposit, banks CAN offer any inducement in the form of gifts or promotional items such as free umbrella with Bank's logo to attract new depositors.
The followings explain how banks facilitate international trading EXCEPT:
Convert and trade foreign currencies
Invest money with the companies
Finance trade between companies and customers located in different countries
Simplify the process of corporate finance through its overseas branches
Importer sells goods to buyer in other countries
The function of letter of credit:
A letter offering loan for importer.
As a guarantee that importer will receive delivery from exporter
A letter which requires the importer to make immediate payment
As a guarantee that the exporter will receive full payment from the importer.
In the letter of credit, who is the issuer of the LC?
Identify the type of Islamic letter of credit (LC): "Importer is required to deposit a portion of the price with the bank"
Identify the type of Islamic LC: "Bank makes profit from the mark up price of the goods"
Identify the type of Islamic LC:"Bank makes full payment using importer's money"
Which of the following is CORRECT about factoring?
Factoring company provides loan to the customer.
Factoring enables company to get immediate cash through the sales of invoice
Islamic factoring is based on the concept of Bay' Al - Inah
The debtor must pay the debt to the seller on the due date
Islamic Acceptance Bill Import is based on the concept of:
Bay' Ad - Dayn
There are 10 questions to complete.