Mcq Islamic Finance 22 456w6n

The following mode(s) of transactions were prevailing during the Prophet’s lifetime: a) shirkah (partnership) based on profit-and-loss sharing (PLS). b) al qard al hasan (benevolent loan). c) salam (forward) contract. d) all of the above. √

2

The four rightly-guided Caliphs are:

Abu Bakr, Umar, ‘Uthman, and Salman. Abu Bakr, Umar, Uthman and Ali. √ Abu Bakr, Umar, Ali, and Abdel Malik. None of the above. 3.

Which of the following is not a function of the Islamic Development Bank (IDB)? to accept deposits and mobilizing financial resources through Sharī’ah compatible modes. to Assist in the promotion of foreign trade especially in capital goods, among member countries. c) to regulate the Islamic banking and financial industry √ d) to establish and operate special funds for specific purposes

4. Dubai Islamic Bank (DIB) operates the following main business group(s): retail banking. corporate banking. real estate. all of the above. √ 5. Islamic finance, as an ethical, interest-free regime built on profit-and –loss sharing (PLS), is meant: a) only for Muslims.

b) for Muslims and non-Muslims only in commercial transactions. c) for Muslims and non-Muslims only in personal finance. d) as an alternative to conventional finance √ 6. Objective of human life is to please Almighty Allah via – only Ibadaat (Acts of Worship). only Mu’amalaat (Interactions with People). both Ibadaat and Mu`amallat. √ none of the above.

7. Two main sources of Shari’ah are – Sunnah (Hadith) and Ijma` (Consensus). Sunnah (Hadith) and Ijtihad (Juristic decision). Quran (Word of Allah) and Ijtihad (Juristic decision). Quran (Word of Allah) and Sunnah (Hadith). √

8. Mu’amalaat (Interactions) refers to man-to-man relationship for – political activities. economic activities. social activities. all of the above. √

9. The name of Islamic Bank which established in Egypt in 1963 is Tabung Haji. Dubai Islamic bank. Islamic Development Bank. Mit Ghamr Local Savings Bank. √ 10. The differences between Islamic bank and conventional bank are –

the prohibition of riba (interest, usury), gharar (excessive uncertainty) and haram (impermissible) activities. the implementation of profit and loss sharing (PLS) principle. the emphasis on productivity and real economic activity (rather than credit worthiness). all of the above. √

11. The principles of Islamic banking are prohibition of predetermined loan repayments as interest (riba). making money out of money as being unacceptable. prohibition of speculative behaviour (Gharar). all of the above. √

12. The major component of the Islamic Banking and Finance Industry is – Islamic Banking. Takaful. Islamic capital market. all of the above. √

13. The key operating mechanism of Islamic Banking and Finance is – only fund mobilization. only fund utilization. both fund mobilization and utilization. √ none of the above.

14. Fund mobilization is the process of raising funds to establish a viable financial institution through – the sale of shares only. the receiving funds from depositors only. both the sale of shares and receiving fund from depositors. √

none of the above.

15. Fund utilization is the process of using the funds realized in Sharī'ah-compliant business. These are – sharing modes. sale modes. leasing modes. all of the above. √ 16. According to Shari’ah, Riba is – a lawful increase. an unlawful increase. √ no change. none of the above.

17. Riba is strongly prohibited in – Quran only. Sunnah (Hadith) only. Both Quran and Sunnah. √ none of the above.

18. In sunnah, ‘Riba Al-Fadl’ refers to the – two commodities. four commodities. six commodities. √ none of the above.

19. Gold for Gold is prohibited to exchange with –

same (equal) amount only. more amount only. √ always prohibited. none of the above. 20. Shari’ah allows the following exchange. 2 kg low quality dates with 1 kg high quality dates. 2kg rice with 3 kg wheat. √ 1 gold coin with 2 coins gold coins. 1 silver coin with 2 silver coins. MCQ. Banking or banking action that is consistent with main beliefs of Shariah and its realistic application from beginning to end improvement of Islamic economics is A. B. C. D.

islamic banking development Bank conventional banking b& c Answer

MCQ. A number of Islamic banks were formed to provide to this particular banking market in late A. B. C. D.

20th century 19th century 18th century none of all of these Answer

MCQ. A bank is considered as a custodian and trustee of money is A. B. C. D.

Wadiah safekeeping a&b Hibah Answer

MCQ. Negotiation of a selling price among two parties exclusive of reference by seller to either costs or asking price is A. B. C. D.

ijarah wa iqtna ijarah musawamah musharika Answer

MCQ. Earliest Islamic bank was established in Malaysia in A. B. C. D.

1980 1983 1982 1988

Sukuk is Arabic name stand for A. B. C. D.

financial liabilities financial certificates financial assets financial loans Answer

MCQ. A type of partnership where one party offer funds while other gives expertise and management is A. B. C. D.

murabaha musharika ijarah mudarabah Answer

MCQ. Shirkat-ul-wujooh has its origin in Arabic word A. B. C. D.

wajahat wajahee waujooh wajhee

Answer MCQ. Word Musharika is originated from the A. B. C. D.

latin word arabic word persian word french word Answer

MCQ. Shirkat-ul-wujooh has its origin in Arabic phrase Wajahat meaning A. B. C. D.

reputation goodwill liabilities assets Answer

er MCQ. Which is liability side financing out of these means A. B. C. D.

large enterprise financing t-bills and federal investment bonds / debenture inter- bank lending / borrowing b&c Answer

MCQ. Expression Finance Certificates & Certificate of Investment in Musharika is A. B. C. D.

liability side financing liability assets assets side financing Answer

MCQ. What is asset side financing out of these means A. large enterprise financing

B. import financing C. Letter of credit with margin (for musharika) D. all of answers are correct Answer MCQ. A pioneering attempt, in Shariah compliant investments banking was undertaken in 1963 in A. B. C. D.

Oman Saudia Arabia Egypt Pakistan Answer

MCQ. Giving share of investor to customer on lease is the A. B. C. D.

basis of musharika basis of diminishing musharika basis of ijarah basis of hibah Answer

MCQ. An agreement in which advance fee is made for commodities to be delivered afterwards on is A. B. C. D.

murabaha bai salam ijarah b& c Answer

MCQ. Whose outcomes are concealed is gharar describes by A. B. C. D.

hanafi school hanbali school zahiri school shafi school

Answer MCQ. Banks are dealing a large number of commodities and services and facing a strong competition to attract A. B. C. D.

potential buyers potential customers potential employees potential sellers Answer

MCQ. Word Musharika is originated from Arabic word Sharikah meaning A. B. C. D.

friends ijarah lessor partnership Answer

MCQ. A assets in Shirkat-ul-milk is mutually possessed but not separated yet, is known as A. B. C. D.

shirkat-ul-milk shirkat-al-aqd shirkah musha

MCQ. A most ordinary kind of Shirkat-ul-Aqd where equality in capital, management or liability might be identical in one case but not in all respect meaning either profit is equal but not labour or vice versa is A. B. C. D.

shirkat-ul-aqd shirkat-ul-ainan shirkat-ul-dain shirkat-ul-milk Answer

MCQ. Profits shall be divided in ratio mutually settled in the A. deed

B. contract C. prescribed D. all of answers are correct Answer MCQ. Working capital financing in Musharika is A. B. C. D.

liability side financing asset side financing assets liabilities Answer

MCQ. How much etc in Musharika is related to A. B. C. D.

quantified ma'loom specified a&b Answer

MCQ. Products of first type may be given to Musharika in capital while second kind of products cannot be a part of capital observation of A. B. C. D.

Imam Maliki Imam Hanafi Imam Shafi Imam Hanabli Answer

MCQ. To generate t possession in assets is A. B. C. D.

shirkat shirkat-al-aqd shirkat-al-milk musharika Answer

MCQ. This happens when a person hires a representative to carry out transactions on his/her behalf, like to a A. B. C. D.

wadiah power of attorney wakalah b& c Answer

MCQ. Where everyone partner contribute some capital into a commercial venture is A. B. C. D.

partnership in capital shirkat-ul-amwal a&b shirkat-ul-abdan Answer

MCQ. Investments given by all partners/shareholders known to as A. B. C. D.

partners ijarah murabah takaful Answer

MCQ. Mutually or equally using an asset by taking twists under conditions where partners or t vendors are on superior stipulations is A. B. C. D.

musharika intifa musharika ijarah hibah

MCQ. It is authorized that if a partner is not working, his profit share can be recognized as less than his capital share is fundamental law of musharika A. distribution of loss B. distribution of profit C. distribution of interest

D. b & c Answer MCQ. A method where payments are prepared in phases to aid stage wise progress in Manufacturing / processing / building works is A. B. C. D.

Istisna ijarah wa iqtna takaful wadiah Answer

MCQ. Islamic banking structure is based on A. B. C. D.

risk sharing interest sharing a&b sharing Answer

MCQ. Sharikah is chief term than A. B. C. D.

ijarah murabaha musharika shirkat-ul-ainan Answer

MCQ. Qur'an forbids A. B. C. D.

gambling interest sharing gharar all of answers are correct Answer

Mainly ideal financing arrangement and holding higher command Shariah compliance is

A. B. C. D.

Pakistan salam musawamah hibah Answer

MCQ. An Ordinance was propagates to permit establishment of A. B. C. D.

mudaraba companies musharika companies murabah companies all of answers are correct Answer

MCQ. Deal is considered Salam if buyer has compensated purchase price to seller in A. B. C. D.

full at time of loss partial at time of sale at time of sale full at time of sale Answer

MCQ. Literally it means a trade on mutually settled profit is A. B. C. D.

murabaha ijarah musawamah ijarah wa iqtna Answer

MCQ. Musharika permits every party involved in a trade to distribute in profits and A. B. C. D.

interest loss gharar

Answ Prevention of a risk free return and authorization of trading, as enshrined in Verse

A. B. C. D.

2:278 of Holy Quran 2:276 of Holy Quran 2:275 of Holy Quran 2:273 of Holy Quran Answer

MCQ. A key concern for Muslims states and recently Islamic banks are A. B. C. D.

loans advances microfinance Answer

MCQ. Losses are shared by each partner in ratio to their A. B. C. D.

work profit loss capital Answer

MCQ. Islamic Shariah forbids A. B. C. D.

all loss on capital all gains on loans all gains on bonds all gains on capital Answer

MCQ. A coupon given willingly by a debtor in return for a credit is A. B. C. D.

bound hibah gift b& c

Combination of capital is not compulsory is A. B. C. D.

basic rules of capital in musharika basic rules of capital in ijarah basic rules of capital basic rules of capital in lease Answer

MCQ. Phrase that is not related to books of Fiqh is A. B. C. D.

shirkah ijarah musharika sharing Answer

MCQ. First Islamic bank was recognized in A. B. C. D.

Pakistan Oman Malaysia Qatar Answer

MCQ. A t project or partnership formation with profit/loss contribution implications that is used in Islamic finance as an alternative of interest-bearing loans is A. B. C. D.

ijarah musharika murabah hibah Answer

MCQ. Profit is based on accord of parties, but loss is all time issue to proportion of A. capital B. investment C. work

D. a & b Answer D

Answer er