1. What happens to financial stability when banks issue more credit than is warranted by real saving? 2. Explain how monetary capital is fully anchored with real capital in Islamic finance. 3. Define...

1. What happens to financial stability when banks issue more credit than is warranted by real saving?

2. Explain how monetary capital is fully anchored with real capital in Islamic finance.

3. Define the interest rate and the profit rate. Should one concept be mistaken for the other?