Question 1

An Ordinance was propagates to permit establishment of

Accepted Answer

A

Question 2

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

Accepted Answer

Musawamah is the negotiation of a selling price by two parties without reference by the seller to either costs or asking price.

Question 3

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

Accepted Answer

Murabaha is the most widely used Islamic mode of financing in the asset side operations of Islamic banks. It involves the bank purchasing an asset and selling it to the customer at a profit, with payment usually made in installments. This method is popular due to its simplicity and compliance with Islamic law, which prohibits interest.

Question 4

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

Accepted Answer

Islamic banking, takaful (Islamic insurance), and the capital market are integral components of Islamic finance, which adheres to Sharia law. The stock exchange, while it can list Sharia-compliant securities, is not a component exclusive to Islamic finance but a general financial market platform.

Question 5

Who bears the loss in wakalah

Accepted Answer

The answer of Who bears the loss in wakalah
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Question 6

Securitization possible in

Accepted Answer

The answer of Securitization possible in
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Question 7

Islamic bank rely on the following two major sources of funds

Accepted Answer

Transaction deposits and investment deposits are the two major sources of funds for Islamic banks.

Question 8

Expression Finance Certificates & Certificate of Investment in Musharika is

Accepted Answer

The answer of Expression Finance Certificates & Certificate of Investment...

Question 9

What is asset side financing out of these means

Accepted Answer

Asset side financing refers to the use of financial instruments or loans for acquiring assets or financing specific transactions. This can include large enterprise financing, import financing, and letters of credit with margins for partnerships or musharika, making all the provided options 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

Accepted Answer

Islamic banking is defined by its adherence to the principles of Shariah law, which includes the prohibition of interest (riba) and ensuring that all transactions are ethically conducted and contribute to the development of the Islamic economy.

Question 11

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

Accepted Answer

Wadiah refers to safekeeping in Islamic finance, where a bank is considered a custodian and trustee of depositors' funds. Both terms (A and B) are related to the concept of safeguarding assets, making option C correct.

Question 12

The appointment of shari ah scholar is done by

Accepted Answer

The appointment of Shariah scholars is typically done by the board of directors on behalf of the shareholders, as they are responsible for ensuring that the company's operations comply with Shariah principles.

Question 13

Earliest Islamic bank was established in Malaysia in

Accepted Answer

The earliest Islamic bank in Malaysia, Bank Islam Malaysia Berhad, was established in 1983.

Question 14

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

Accepted Answer

Mudarabah is a partnership where one party provides the capital (Rab-ul-Maal) and the other party provides expertise and management (Mudarib). This is a common practice in Islamic finance.

Question 15

Shirkat-ul-wujooh has its origin in Arabic word

Accepted Answer

The answer of Shirkat-ul-wujooh has its origin in Arabic word
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Question 16

Word Musharika is originated from the

Accepted Answer

The word Musharika is derived from the Arabic word "Musharakah," which refers to a joint enterprise or partnership where all partners share in the profit and loss of the venture. This concept is widely used in Islamic finance.

Question 17

Combination of capital is not compulsory is

Accepted Answer

In Musharika, a partnership in Islamic finance, it is not compulsory for all partners to contribute capital equally.

Question 18

Phrase that is not related to books of Fiqh is

Accepted Answer

The answer of Phrase that is not related to books...

Quiz 1: Islamic Banking and Finance: Part A