2. Usufruct: 3. Musharakah Mutanaqisah: 4. Musawama: 5. Bay 'u'l-Mu'ajjal Section II- Short Questions Answer the following questions: (2 points each 4=8 ) 1. How is Murabaha operation conducted in Islamic banks today? And in what ways and how does it differ from interest? Explain with examples. 2. What are the conditions for a financial contract to be valid in Islamic economic system? After listing the conditions, you should also explain how an invalid contract differs from a defective one. 3. What is diminishing Musharakah? After explaining it with an example, you should also point out the major differences between Muhsarakah and Mudarabah. 4. How do you describe Islamic banking, as compared to conventional banking, in terms of its services, operation and governance? Section III- Essay Questions Answer the following question in an essay form (3 points) 1. Can you compare and contrast the position of those who defend the prohibition of Riba with that of those who argue for its justification? In your answer, you should first juxtapose the arguments of both sides one by one and then indicate and discuss, with examples, how convincing (i.e. strong or weak) their arguments are in your opinion..

1. 2. Usufruct: 3. Musharakah Mutanaqisah: 4. Musawama: 5. Bay 'u'l-Mu'ajjal Section II- Short
Questions Answer the following questions: (2 points each 4=8 ) 1. How is Murabaha operation
conducted in Islamic banks today? And in what ways and how does it differ from interest?
Explain with examples. 2. What are the conditions for a financial contract to be valid in Islamic
economic system? After listing the conditions, you should also explain how an invalid contract
differs from a defective one. 3. What is diminishing Musharakah? After explaining it with an
example, you should also point out the major differences between Muhsarakah and Mudarabah.
4. How do you describe Islamic banking, as compared to conventional banking, in terms of its
services, operation and governance? Section III- Essay Questions Answer the following question
in an essay form (3 points) 1. Can you compare and contrast the position of those who defend the
prohibition of Riba with that of those who argue for its justification? In your answer, you should
first juxtapose the arguments of both sides one by one and then indicate and discuss, with
examples, how convincing (i.e. strong or weak) their arguments are in your opinion.