Explain the difference between the Conventional Finance & Islamic Finance:
Part I
1. What can a conventional bank do to a $10 000 – loan?
2. How does it turn out that the poor pay about 40% per month?
3. What is the compounding interest?
4. How would you define such an operation as the creation of money?
5. What is a default? Under which circumstances does it emerge?
6. What does an Islamic bank do to the same sum of $10 000? Where does the central point of difference lie?
7. Speak on the recent financial downturn that started as a housing bubble.
8. What are the results of the created artificial money supply, not backed by real assets?
9. Speak on the experience of the Nigerian Ex-president. How could a loan of $ 5bln turn into $44 bln? What does a spread-sheet show?
Part II + Part III
1. What would an Islamic Bank do to the $ 5bln-loan? Which projects could an Islamic Bank have arranged for $ 4bln?
2. Which conventional finance products can Islamic istisma, musharakah or mudarabah, murabahah, sukuk be compared to?
3. What is looked upon as a harmful part in the conventional banking system?
4. Speak on the experience of Nick, the homebuyer.
5. How does the diminishing musharakah work?
