True, An Islamic Letter of Credit avoids riba by using Shariah-compliant contracts., In Wakalah-based ILC, the bank acts as an agent for the importer., Murabahah-based ILC involves the bank selling goods at a disclosed profit margin., Musharakah-based ILC requires the bank and customer to share risk., Bay' al-Dayn refers to the sale of debt arising from a trade transaction., ECR-i provides Shariah-compliant working capital support for exporters., False, Conventional Letters of Credit are always structured on Murabahah., Accepted Bills-i are based on charging interest on deferred payment., ECR-i can only be used after the importer receives the goods., In Murabahah, the bank's profit is unknown until maturity., Wakalah-based ILC makes the bank the owner of the goods., Islamic trade finance permits financing of haram goods.

CHAPTER 7

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