Sunday, 5 June 2011

Do You Know That ??

1 dinar = 1 mithqal   
1 mithqal = 4.25 gram                
1 dirham = 7/10 mithqal

 The banking system has started in Istanbul at 1840….
        But… Islamic community just accept that system 37 years later…

comes from Persian root word;dinarius

Comes from Rome root word;drahmah.





According to  Prof. Dr. Mohd. Ma’sum Billah, money in any form must have three attributes that make it acceptable to the public :

           It must be able to be stored money. For example, a person receives his salary at the beginning of the month, but he may not be willing to spend it that very moment. He may decide to keep the money and use it now and then throughout the month. Or he may be saving that money to buy a house or a farm for and will have to save money for months ahead.

         It must be a unit of account. The users must be able to measure the value of different commodities with respect to money. Thus, if a meter of cloth costs 10 units of money, then a ready-made suit of the same material will definitely cost more than those 10 units of money.

       It should be an accepted medium of exchange to make it valuable. Everyone in the community must accept that money in exchange of goods or service otherwise the money does not fulfill its purpose. Usually the government will issue a legal tender informing the public that the new form of money is to be used from then on. This motivates the public into accepting that currency.

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