|
A
|
Interest-free banking
Some financial institutions do not charge interest on loan or pay interest
on savings, because it is against certain ethical or religious beliefs. For
example, in Islamic countries and major financial centres there are Islamic
banks that offer interest-free banking.
|
|
B
|
Types
of accounts
Current
accounts in Islamic banks give no return – pay no interest – to depositors.
They are a safekeeping arrangement between the depositors and the bank,
which allow the depositors to withdraw their money at any time, and permits
the bank to use the money.
|
|
C
|
Leasing and short-term loans
To finance the purchase of
expensive consumer goods for personal consumption, Islamic banks can buy an
item for a customer, and the customer repays the bank at a higher price later
on. Or the bank can buy an item for a customer with a leasing or hire
purchase arrangement.
|
EXERCISES
|
26.1
|
Match the two parts of the sentences. Look at A opposite to help you.
|
1
|
The basic feature of Islamic banking
|
|
2
|
Instead of
charging and paying interest
|
|
3
|
Depositors in Islamic
banking
|
|
|
26.2
|
Which of the
following statements could be made by customers of Islamic banks, and which
by customers of conventional banks? Look at B opposite to help you.
|
1
|
I get 1.5% on my current account and 3% on my
savings account.
|
|
2
|
I get a
variable rate of return on my savings account, depending on the bank’s
profitability.
|
|
|
26.3
|
Make word combinations using a
word from each box. Then use the word combinations to complete the
sentences below. Look at A, B and C opposite to help you.
|
1
|
All businesses need ______ __________ for
everyday purchases and expenses.
|
|
2
|
I don’t pay
interest but the banks adds a ______ __________ to cover its expenses. 
|
|
|
No comments:
Post a Comment
thank you for visiting my blog and for your nice comments