Assignment Of Material About Banking

ASSIGNMENT OF MATERIAL ABOUT BANKING 1. The Muslim view of economics is that the ban on interest and interest has a negative impact on the economy and precedes it with lossn profit sharing. Explain bonus and loss profit sharing for. • The interest impact on the economy is because of interest, money will be concentrated in the monetary sector, causing the real sector to shrink. When the real sector is shrinking, there is an increase in money in the monetary sector, but it is not matched with the increase in debt in the real industry. When money increases, but is not matched by the quantity of goods, then there will be inflation, which will hinder the pace of the economy. • The impact of loss profit sharing on the economy is that when the use of profit loss sharing is applied, the distribution of wealth and income will become more even, which in turn will drive the growth of the real sector. Increased productivity and job opportunities will boost the economy, and Islamic Sukuk is an example of government submission. The government will issue more bucks when there's inflation, so the bucks flow to the central bank. And as the amount of money in circulation decreases, the triangle loses the ability to raise or decrease the quantity of money that circulates. If the amount of money in circulation increases, the government will sell its family, so that the money from the public goes to the central bank. 2. Explain the difference between conventional money demand theory and Islam! • The theory of conventional money embezzlement a) Classical monetary theory The economy will always be in a state of fill employment. b) Keynes theory That market mechanisms cannot automatically guarantee full empoyment in the economy. • Islamic money demand theory a. According to the alternative mazhab, the existence of money is an expression of the amount of transactions that take place in the rill sector. Islam argues that the change of time cannot affect the increase in economic value added. As long as money is used, there is economic exploitation. b. According to the mazhab, money demand is indicated only for two main purposes: transactions and investments. c. According to the mainstream mazhab, Islam directs the allocation of existing resources to be used optimally and efficiently. The deposit of money or the deposit of wealth is a criminal act. 3. The monetary sector defines the difference between the Islamic and conventional economic systems. In the conventional monetary system, interest is crucial to influencing the economy, but in the Islamic economic system, it is strictly forbidden. The Islamic monetary system prohibits interest rates as it can cause imbalances between the real and monetary sectors, leading to economic instability. Explain why this happens and what alternatives does the Islamic monetary system offer to interest? Explain! • Interest rates can cause imbalances between the real and monetary sectors, leading to economic instability as they hinder real-sector investment and activity. In addition, interest rates drive inflation and speculation, and can affect unemployment and employment rates as well as public incomes. • Furthermore, the Islamic monetary system offers an alternative to the interest rate system through the system of income, which is the core of the islamic currency system. Thus, the "income-sharing" system is an Islamic economic solution to interest or interest in a loan system borrowing funds used for business. The Mudharabah, Musyarakah, and Muzara'ah systems are also applied in the Islamic economic system to develop capital markets, manufacturing, and investment. As well as the rental principle that can develop the hospitality industry, consultants, labour exchanges, and also leasing. 4. A company bought five cars from a leasing company on credit for five years. However, the leasing company did not have the funds needed to buy the five cars. As a result, the leasing company contacted the Conventional Bank. The conventional bank finally funded the purchase of the car. Company A gets credit and has to pay it to a conventional bank. What's the brother's opinion about the credit given by company A? Explain the brother's reason if it's valid; if it isn't valid, explain the reason, and make sure the transaction is valid. • Since the amount of payments to be paid by Company A to the Conventional Bank will exceed the loan basis, I think this case is not valid and not permitted in Islam. It's included in the form of a flower or a jellyfish. This differs from Sharia financing, where the transactions between the company and the consumer are merchandise, and the income the company earns is considered a legal margin. This is because the sale is different from the interest, which is the debt of the borrower that borrows money to be paid with money. However, in Sharia financing, a murabahah transaction is money with goods, not cash. 5. In the opinion of the brothers, what about the gold credit that the Sharia Bank does? • In my opinion, the gold deposit in the sharia bank can be done in order to fulfil the agreement. Murabahah is a bargain, which must be agreed at the beginning of the gold surrender. That should be done at the end of the season after the season. In addition, gold deposits in the Sharia Bank are not considered a levy because gold is not a means of payment. Furthermore, the DSM MUI Fatwa No. 77 of 2010 on the sale of noncash purchases explains this. It is explained here that as long as gold is not converted into an official exchange, the sale of gold in non-cash form, either through the ordinary sale or in a bargain, is legal. a. The profit sharing ratio is a monetary indicator that can be used by the central bank. This must be set before the business starts, and will increase the nasaabha profit ratio when the central bank wants to increase the amount of money in circulation. b. Financing ratio is the financing ratios used by commercial banks in the distribution of financing. Therefore, the financing rate will rise when the economy is sluggish. c. The percentage of interest-free loans is the percentages of loans. The funding that will be given will rise with raisio refinancing and commercial banks must be careful when they go down because they are not credited to lend. d. Islamic Sukuk is the participation of the government. The government will issue more bucks when there's inflation, so the bucks flow to the central bank. And the amount of money in circulation will decrease, so that the squad cannot raise or lower the total amount of cash that is circulating. Therefore, as the amount of money in circulation increases, the government will sell its family, which will generate money from the people entering the central bank. e. A government investment certificate is an acquisition or purchase of a central bank certificate.