The Federal Reserve
What is the Federal Reserve?
The U.S. central bank that controls money supply, sets interest rates, and keeps the economy stable.
What is riba?
interest — which is forbidden in Islam.
What makes Islamic banks different from normal banks?
They avoid interest and focus on fair trade.
What does “Shariah-compliant” mean?
Following Islamic law.
How does the Federal Reserve affect people?
It changes borrowing costs, prices, and jobs.
Who leads the Federal Reserve
The Board of Governors and the Chair.
Why is riba not allowed in Islam?
Because it’s unfair and takes advantage of others.
What is a murabaha?
A “buy and sell” deal instead of a loan with interest.
Who decides if a financial product is halal?
A Shariah Supervisory Board of scholars.
Can Muslims in the U.S. avoid interest completely?
It’s hard, but Islamic banking helps minimize it.
What is the main goal of the Fed?
To keep the economy stable and growing.
What does Islam say money should be used for?
Good causes, trade, and fairness.
What is a mudarabah?
A partnership where profits are shared fairly.
What is haram in Islamic finance?
Interest, gambling, and unfair profit.
What happens when the Fed raises rates?
Loans and credit become more expensive.
What are the 12 districts of the Federal Reserve?
They are regional banks across the U.S.
What is gharar?
Uncertainty or risky contracts that are not allowed.
What is an ijara?
A lease-to-own or rental agreement that’s halal.
What is zakat?
A charity tax that helps those in need.
Why do some Muslims prefer halal banks?
They want to follow Islamic laws on money and fairness.
Why does the Federal Reserve raise or lower interest rates?
To control inflation and support jobs.
What is the Islamic view of wealth?
It belongs to Allah and should be shared and used responsibly.
What is a sukuk?
An Islamic bond that avoids interest.
Why must Muslims be honest in trade and business?
Because Islam teaches honesty and fairness in all dealings.
How can Islamic finance help the U.S. economy?
It promotes honesty, fairness, and less risky banking.