SEMESTER FALL 2017
Islamic Modes of Financing (FIN624)
GDB No. 1
The objective of this activity is to enable the students in understanding the ‘Concept of Murabaha and its Practical Application”.
Most of the Islamic banks and financial Institutions are using ‘Murabaha’ as an Islamic Modes of Financing and most of their financing operations are based on ‘Murabaha’. That is why the term has been taken in economic circles today as a method of banking operations.
Suppose a client ‘A’ approaches bank ‘B’ to purchase a machinery. The bank ‘B’ purchases the machinery from supplier ‘C’ and sale to client ‘A’ on the basis of Murabaha without disclosing the cost. You are required to answer the following questions.
a) i think its not valid transaction.
b) because in murabaha financing it is necassery to disclose the cost of the commodity which buyer purchase, its the responsibility of the seller to tell the actual aquiring cost to obtain profit..
c) the valid transaction process for murabaha would be, that buyers knows the subject which exist. Also knows the discloure cost..
no. it is not necessary to disclose the cost.