User cethinxjhq


Member for:	2 years (since Aug 8, 2022)
Type:	Registered user
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Website:	https://www.romeo-bookmarks.win/sharia-loans-australia
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About:	In the world where interest and debt are forbidden, a alternative to traditional finance is emerging in the form of Islamic finance. This type of finance is free of the issue of interest as well as other types of complications within the financial world and instead considers the people who provide funds as joint-venturers and partners within the joint venture. Islamic finance views money as "potential capital" until it joins forces with other resources, such as bonds, stocks and other investments. Islamic finance acknowledges time values money when it acts as capital, and also prohibits speculation, gambling, and taking risks in the process. Because Islamic finance is based on principle of supply-and-demand, it is insulated from large economic fluctuations due to financial instability. In fact, it can even stop economic growth in the event of financial instability. Contrary to this, traditional banking practices have to stop the exchange of currency in the event of a run and will require massive amounts of liquid assets from the central bank. This model will see the money stock or M, grows proportionally to the real income (P), but the price of the stock will be lower. Another difference that distinguishes conventional from Islamic banking is that Islamic banks don't engage in interest-bearing or speculation. Unlike conventional banks, Islamic banks engage in direct trade and investment activities and their obligations are backed by savings. This means that new cash flows out of sales and not the stroke of a pen. Furthermore, Islamic banks invest their deposits in real assets and don't make their own money. This means that they do not create excessive purchasing power.

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