
AAOIFI Shariah Standard No. 30 “Monetization (Tawarruq)”. Dr. Ahmad Asad
Quiz by Ahmad Asad
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Inah means to buy the commodity on _________ and sell it for a ______ spot price to the same party from whom the commodity was purchased.
At the time of signing contract, __________ then a description or a sample of the commodity should be provided by the client which shows its quantity and place where it stores just to eliminate any fictitious image of the transaction.
 The commodity must be sold to a party otherthan the one from whom it was purchased on deferred basis to avoid ________.
Monetization is recommended to the institutions only when they face the danger of a _________ .
Monetization refers to the process of purchasing a commodity on deferred payment through Musawamah or Murabaha and selling it to a third party on spot price.
 It is permitted for the institution to execute Monetization for the benefit of conventional banks which would like to generate liquidity if there are no Islamic banks available.
 In Monetization transaction, gold is allowed as a subject matter as long as the gold is bought at market value.
In Monetization transactions, commodity can be sold by the client either by himself or through an agent.
Monetization is a suitable substitution for Mudarabah and Sukuk in times of excess liquidity.
To execute Monetization, deposit of a portion of price as a security can be taken.