Answer Happy

You are presented with hypothetical scenarios where questions and/or comments related to Islamic capital markets are given. Based on what you have learned in this Islamic capital market course, as well as other sources of reference you may want to obtain, provide a specific, relevant, reasoned and well-articulated response for each scenario. Each question will be worth 5 marks. You need not provide a very lengthy response. Quantity will not assure a high mark. Instead, grading will be based on accuracy and relevance. 9. An old school friend, upon learning that you are studying Islamic finance, has contacted you: “I just learned about this thing called tawarruq. Apparently it is widely used in contemporary Islamic finance – in banking and in capital markets. I read that there are some controversies regarding its common use. I don't understand why, after all, tawarruq is just about buying and selling commodities, right? In Islam, sale is permitted, only riba is prohibited. So, what's the big deal?" 10. Someone you just met remarked: “I do not see any reason why one would want to invest in REITs. If you want to invest in real estate, you should just buy a house and live in it. There's no downside with that strategy and it is simply non-sensical to even consider putting money in a REIT.” How would you respond to such a view?