Deck 1: Islamic Banking and Finance: Part A

Question 1

An Ordinance was propagates to permit establishment of

A)mudaraba companies
B)musharika companies
C)murabah companies
D)all of answers are correct

Answer 1

mudaraba companies

Question 2

Negotiation of a selling price among two parties exclusive of reference by seller to either costs or asking price is

A)ijarah wa iqtna
B)ijarah
C)musawamah
D)musharika

Answer 2

musawamah

Question 3

What is the most widely used Islamic mode of financing in asset side operation of Islamic banks?

A)murabaha
B)ijarah
C)salam
D)diminishing musharakah

Answer 3

murabaha

Question 4

The following items are major components of Islamic banking and finance except

A)islamic banking
B)takaful (insurance)
C)stock exchange
D)capital market

Question 5

Who bears the loss in wakalah

A)principal
B)wakeel
C)both together
D)none of the above

Question 6

Securitization possible in

A)murabaha
B)ijara
C)both a and b
D)none of the above

Question 7

Islamic bank rely on the following two major sources of funds

A)transaction deposits and accounts receivables
B)investment deposit and current accounts
C)accounts payable and investment accounts
D)transaction deposits and investment deposits

Question 8

Expression Finance Certificates & Certificate of Investment in Musharika is

A)liability side financing
B)liability
C)assets
D)assets side financing

Question 9

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

Question 10

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)islamic banking
B)development bank
C)conventional banking
D)b& c

Question 11

A bank is considered as a custodian and trustee of money is

A)wadiah
B)safekeeping
C)a & b
D)hibah

Question 12

The appointment of shari ah scholar is done by

A)shareholders at annual general body meeting
B)the board of directors on behalf of the shareholders
C)by the relevant government authority like cma
D)all of the above

Question 13

Earliest Islamic bank was established in Malaysia in

A)1980
B)1983
C)1982
D)1988

Question 14

A type of partnership where one party offer funds while other gives expertise and management is

A)murabaha
B)musharika
C)ijarah
D)mudarabah

Question 15

Shirkat-ul-wujooh has its origin in Arabic word

A)wajahat
B)wajahee
C)waujooh
D)wajhee

Question 16

Word Musharika is originated from the

A)latin word
B)arabic word
C)persian word
D)french word

Question 17

Combination of capital is not compulsory is

A)basic rules of capital in musharika
B)basic rules of capital in ijarah
C)basic rules of capital
D)basic rules of capital in lease

Question 18

Phrase that is not related to books of Fiqh is

A)shirkah
B)ijarah
C)musharika
D)sharing