How does the operation of a conventional bank differ from that of an Islamic bank?
A)Islamic banks are allowed to charge higher interest rates on loans.
B)Islamic banks cannot accept private deposits.
C)Islamic banks cannot pay or charge interest.
D)Islamic banks are not subject to any form of law.

Question

Quizplus · Accepted Answer

Conventional banks make a profit on the spread between the interest rate they have to pay to depositors and the higher interest rate they charge borrowers.However,Islam prohibits the payment or receipt of interest,which is considered usury.

How Does the Operation of a Conventional Bank Differ from That