CIFE Islamic Finance Practice Test
CIFE Islamic Finance Principles & Shariah
What is 'Riba' and why is it prohibited in Islamic finance?
Select your answer
A
Riba means interest or usury; it is prohibited because it is considered exploitative and unjust as it guarantees a return without sharing risk
B
Riba means profit sharing; it is encouraged in Islamic finance
C
Riba means charitable donation; it is optional in Islam
D
Riba means currency exchange; it is banned only in GCC countries
Hint
