In this video, an important aspect of Capital formation by banks through fractional reserve Banking hasn't been covered. Capital creation out of thin air is one of the main reasons of rising inflation and fiat currency devaluation.

Summary The video explains the functions of interest in a capitalist economy and discusses alternatives for interest in an Islamic economy. Highlights 💰 Rationing Capital: Interest helps allocate limited funds to the best investment projects. 📈 Motivating Savings: Interest incentivizes individuals to save and invest in productive assets. ⏳ Positive Time Preference: People prefer present consumption; interest encourages saving for future needs. 📉 Marginal Disutility of Saving: Interest offsets dissatisfaction from excessive saving by providing rewards. 🏦 Inflation Compensation: Interest protects savings from inflation’s eroding effects. ⚖️ Need for Alternatives: Islamic economies must find ways to replicate interest’s functions without using interest. 🔍 Future Exploration: Upcoming videos will discuss Islamic alternatives to interest. Key Insights 💡 Capital Allocation: Interest serves as a mechanism to prioritize investment projects, ensuring that limited resources are directed towards the most promising ventures. This filtering process boosts economic efficiency. 💸 Incentivizing Investment: The role of interest in capital formation underlines its importance in driving economic growth by encouraging individuals and businesses to invest in productive assets, which enhances overall economic productivity. 📊 Behavioral Economics: The concept of positive time preference highlights the natural tendency of individuals to favor immediate gratification over future benefits, which interest rates effectively counteract by providing financial incentives for saving. 🔄 Diminishing Returns on Saving: As savings increase, the motivation to save more diminishes. Interest serves to motivate continued saving despite this diminishing utility, helping maintain capital accumulation. 🚀 Inflation Dynamics: In inflationary contexts, interest rates serve as a crucial tool for preserving the purchasing power of savings, ensuring that individuals do not lose value over time and encouraging long-term saving behavior. 🌍 Islamic Economy Challenges: The absence of interest in Islamic economies necessitates innovative solutions to replicate interest’s functions, emphasizing the need for policies to promote savings and investment. 🧭 Future Discussions: The video sets the stage for exploring potential Islamic financial instruments that can fulfill the roles of interest, inviting viewers to engage with upcoming content on this topic.

Any explainers ? I don't speak Arabic

Urdu me batiye

Where's the rest?????

Masha'a Allah ❤❤❤

great job please let me know about the white board, which board are you using?

Alhamdulillah. Finally had the time to sit through an entire lesson. Baarak Allahu feehi

The sound is too low... Plz check...

🎉

Thank you very much sir you are like a my teacher

Allahu Akbar

Awaz ny aa rahi hai

What course is this ?????

I enjoy so much .I feel like I am in your class .I laughed so hard when you said kabeer khatam bhai .kabeer kay elawa lafz bolnay hain .hahaha ..you are doing a wonderful job I swear .May Allah increase you in knowledge. Ameen .

Ek chez smjh nhi ai. Jab apnay dafar ko as a male treat kia howa keh kar .toh Jab dafatar aya toh apnay male treat kiun nhi kia becoz you said Heya alal maktab .? I am confused

Man antum ka meaning nhi btaya apnay ?

Bohat behtareen smjhatay hain ap mashaa Allah ❤

No voice

لَیسَ عَلی الاعمٰی حَرَجٌ

اللّٰه تعالیٰ آپ کو جزائے خیر عطا فرمائیں آمین 🤲

ذُو العَرشِ العَظِیم ذُو الجلال والاکرام

Jazakallah khair ❤ bht achy lecture han ma ny book ky sbq ki translation sun ny k liy join kiya tha likn is sy mjhy or bhi bhttt concept clear hu gy . . .

Assalamualaikum walaikum excellent explanation

This video provides a simplified yet insightful look at the balance sheets of the four key players in an economy: the government, the central bank, commercial banks, and the non-banking private sector (individuals, firms, etc.). Key Concepts: Double-Entry Bookkeeping: Every financial asset is simultaneously a financial liability for another entity. This principle is crucial for understanding the interconnectedness of the economic system. Financial vs. Physical Assets: Financial assets (bank deposits, bonds, cash) always have a corresponding liability on another balance sheet. Physical assets (houses, cars, gold) do not. Balance Sheet Highlights: Government: Assets: Deposits at the central bank and commercial banks. Liabilities: Government bonds (debt obligations). Central Bank: Assets: Government securities, private sector securities (sometimes non-performing loans), foreign exchange reserves. Liabilities: Government deposits, reserves of commercial banks, currency in circulation. Commercial Banks: Assets: Reserves at the central bank, government securities, loans to customers. Liabilities: Deposits from customers, short-term borrowings, long-term debt, equity capital. Non-Banking Private Sector: Assets: Bank deposits, physical cash, bonds, physical assets (houses, cars, etc.). Liabilities: Loans from commercial banks, net worth. Key Takeaways: Modern Money Mechanics: Transactions are settled using liabilities. Individuals use commercial bank liabilities (deposits) while commercial banks use central bank liabilities (reserves). Central Bank's Role: Acts in the national interest, focusing on economic stability, inflation control, interest rates, and exchange rates. Interconnectedness: The balance sheets illustrate the interconnected nature of the economy. Actions by one player can have ripple effects on others. This video provides a foundational understanding of how money flows and interacts within an economy. By analyzing the balance sheets of key players, we gain valuable insights into the mechanisms driving economic activity.

Promo-SM 🎶

Thank you sir

Allah is the greatest❤️‍🩹

Assalamualaikum wr. Jazakallah hu khair..

بیٹا جی آپ بہت اچھے سے سمجھا رہے ہو ساتھ میں اردو میں ترجمہ کردیں تو ہم جیسے کو بھی سمجھ آجائے..

ما شاء الله

Ye konsi book hai

Sir mujhe ye sarf ki table chahiye 😊😊

Mashaallah

Bro why you stopped the poetry analysis..

Jazakallah 🎉🎉❤❤❤❤

Yeah I'd love to hear the rest of the course. How did you come by these?

Sir you made my studies easy. Allah will give you the best version of it ❤ inshallah ❤❤🎉😊

Assalamu alaikum jazakallahu khair

jazakALLAHU khair kathira kathira very very useful to all us

Excellent explanation

𝔻𝕒𝕣𝕤 𝕟𝕠 22 𝕓𝕒𝕥𝕒𝕖 pleas

𝔸𝕤𝕤𝕒𝕝𝕞𝕦 𝕒𝕝𝕒𝕚𝕜𝕦𝕞

Allah ho Akbar ❤❤❤Subhan Allah 💕💕💕

الله اكبر

Conventional lending is compound interest and murabaha is simple interest. Murabaha is the type of simple interest we teach students in grade 5 because they can't understand compound interest yet

Hello, are you going to upload the rest of the course?

I was so sad to see this course vanish from iTunes U. happy to see someone saved it on youtube. Its a gem.

Who are you cheating? Allah?

Asslamualikum Sir sir i,m continously watching yours viseoes it's too helpfull for a good learner jazakallah