Islamic Banking Products Set 1

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This set of Islamic Banking Products Multiple Choice Questions & Answers (MCQs) focuses on Islamic Banking Products Set 1

Q1 | Sukuk is Arabic name stand for
  • financial liabilities
  • financial certificates
  • financial assets
  • financial loans
Q2 | A type of partnership where one party offer funds while other gives expertise andmanagement is
  • murabaha
  • musharika
  • ijarah
  • mudarabah
Q3 | Word Musharika is originated from the
  • latin word
  • arabic word
  • persian word
  • french word
Q4 | Which is liability side financing out of these means
  • large enterprise financing
  • t-bills and federal investment bonds / debenture
  • inter- bank lending / borrowing
  • b & c
Q5 | Expression Finance Certificates & Certificate of Investment in Musharika is
  • liability side financing
  • liability
  • assets
  • assets side financing
Q6 | What is asset side financing out of these means
  • large enterprise financing
  • import financing
  • letter of credit with margin (for musharika)
  • all of answers are correct
Q7 | Giving share of investor to customer on lease is the
  • basis of musharika
  • basis of diminishing musharika
  • basis of ijarah
  • basis of hibah
Q8 | An agreement in which advance fee is made for commodities to be delivered afterwardson is
  • murabaha
  • baisalam
  • ijarah
  • b& c
Q9 | Word Musharika is originated from Arabic word Sharikah meaning
  • friends
  • ijarah
  • lessor
  • partnership
Q10 | A most ordinary kind of Shirkat-ul-Aqd where equality in capital, management orliability might be identical in one case but not in all respect meaning either profit is equal but not labour or vice versa is
  • shirkat-ul-aqd
  • shirkat-ul-ainan
  • shirkat-ul-dain
  • shirkat-ul-milk
Q11 | Working capital financing in Musharika is
  • liability side financing
  • asset side financing
  • assets
  • liabilities
Q12 | Where everyone partner contribute some capital into a commercial venture is
  • partnership in capital
  • shirkat-ul-amwal
  • a & b
  • shirkat-ul-abdan
Q13 | Investments given by all partners/shareholders known to as
  • partners
  • ijarah
  • murabah
  • takaful
Q14 | Mutually or equally using an asset by taking twists under conditions where partners orjoint vendors are on superior stipulations is
  • musharikaintifa
  • musharika
  • ijarah
  • hibah
Q15 | Sharikah is chief term than
  • ijarah
  • murabaha
  • musharika
  • shirkat-ul-ainan
Q16 | Factually it means a credit sale is
  • baimuajjal
  • mudarabah
  • ijarah
  • murabaha
Q17 | An investor and his customer contribute either in shared possession of an assets orequipment, or in a combined commercial venture is
  • diminishing musharika
  • musharika
  • ijarah
  • salam
Q18 | The term Shirrkah – al- aqd in Islamic commercial law refers to a partnership or jointventure formed by………
  • payment of a fixed price
  • safe keeping
  • contract
  • ruling by the shariah scholars
Q19 | The Islamic financial system prohibits transactions featuring
  • extreme uncertainties resulting from speculation and gambling
  • sharing of profit and risk of loss
  • partnership agreements
  • trading for profit
Q20 | Are Islamic banking products for Muslims only
  • for muslims and and those non-muslims who are allowed by sharri'ah scholars.
  • no
  • yes
  • for muslims and those who convert to muslims
Q21 | Tameen is another name for
  • takaful (islamic insurance)
  • faqir (a poor person)
  • shirkah (partnership)
  • tatfif (fraud)
Q22 | Amanah in Islamic banking refers to
  • a deposit held in trust which creates various fiduciary duties.
  • an expert who is consulted for advice on islamic law.
  • an interest-free loan.
  • a loan that does not have to be repaid
Q23 | The Arabic term Haq means
  • legal rights
  • credit proposal
  • taking full responsibility
  • kind of sale
Q24 | The Shari'ah is set of rules or law governing
  • spending on objects which have been explicitly prohibited.
  • the quantity and quality of a good for sale
  • economic, social, political and cultural aspects of islam societies.
  • principles of partnership
Q25 | Wakalah is used by Islamic banks mostly for
  • consumer loans
  • sales through documents
  • fund management
  • guaranteeing payments