Islamic Banking Products Set 2

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This set of Islamic Banking Products Multiple Choice Questions & Answers (MCQs) focuses on Islamic Banking Products Set 2

Q1 | The term Arbun refers to
  • down payment
  • loan payment
  • savings.
  • deposit with a bank.
Q2 | Banking may broadly be described as the business of providing
  • investment services
  • financial services
  • loans and mortgages
  • foreign exchange services
Q3 | Which of the following is a type of investing instrument?
  • musharakah
  • tawarruq
  • kafalah
  • qimar
Q4 | The term Aqd in Islamic commercial law refers to
  • ownership of goods
  • a contract
  • non-permissible
  • permissible
Q5 | Takaful, a form of Islamic insurance, refer to a scheme for
  • struggling for livelihood
  • perfect ownership
  • equal distribution of wealth
  • mutual assistance and shared responsibility
Q6 | The Arabic term Ayn refers to
  • time of possession
  • fixation of cost
  • a tangible (physical asset)
  • conditions
Q7 | What does the abbreviation IFSB stands for
  • islamic finance supervision and banking
  • islamic financial supervisory board
  • islamic financial services board
  • islamic financial services bank
Q8 | Shariah provides a network of ethical and moral rules of behaviour for
  • potential buyers
  • travelling merchants
  • all participants in market
  • muslims only
Q9 | Religious supervisory board of Islamic banks plays an important role in
  • determination of the ratio of profit-sharing according to islamic principles.
  • raising capital for the banks according to islamic principles.
  • introduction of new product and services that comply with islamic princples.
  • mobilisation of funds according to islamic principles
Q10 | The term Riba literally means
  • any speculation
  • any excess
  • any profit
  • any wealth
Q11 | The term Hawalah refers to a contract of
  • profit loss sharing
  • repayment of loans
  • assignment of debt
  • profit sharing
Q12 | Deposits placed with banks practically take the form of
  • donations from depositors to the bank
  • a sale contracts with the bank
  • authority to the bank to lent monies
  • loans from depositors to the bank
Q13 | The Islamic financial system is founded on
  • cancellation, revocation of debt
  • absolute prohibition of the payment or receipt of any predetermined, guaranteed rate of return
  • imposition of an obligatory tax on earnings
  • land and property tax levied by the state
Q14 | Ijarah literally means
  • price of goods
  • type of transaction
  • risk or loss or fraud
  • to give something on rent
Q15 | The termWaqf refers to
  • bill of exchange
  • what is due to the state treasury
  • promissory note
  • charitable foundation or trust
Q16 | The Arabic term Kafil means
  • a person taking possession of goods
  • a person taking delivery of goods
  • a person providing surety
  • a person withholding delivery of goods
Q17 | What does the abbreviation IFI stand for in Islamic banking?
  • islamic forum for intermediation
  • islamic finance industry
  • islamic financial instrument
  • islamic financial institution
Q18 | Islamic corporate governance promotes
  • currency reserves
  • ethical and moral behaviour
  • debt whose repayment is postponed
  • specialised large-scale commercial institutions
Q19 | The term Dhaman in Islamic commercial law refers to
  • islamic banking operations
  • several types of islamic financial transactions
  • the taking on of a liability or responsibility of another person
  • commercial activities of islamic banks
Q20 | The Arabic term Qimah implies
  • duties of a man to god
  • a particular situation
  • sharing certain risk
  • sale of the real value of goods
Q21 | The term Hiba refers to a contract of
  • money payment
  • gift
  • investment
  • deposit
Q22 | Under a Salam contract goods are
  • not delivered until payment is made
  • taxed before delivery
  • purchased for delivery in future
  • delivered for payment later
Q23 | The term Kafalah in islamic commercial law refers to
  • finance
  • guarantee
  • purchase
  • bargain
Q24 | Islamic financial system seeks to
  • encourage wasteful expenditure
  • administer land revenue
  • postpone debt repayment
  • enhance equality and fairness in financial dealings for the good of society as whole
Q25 | Maqsid, an Islamic term, refers to
  • land and possessions
  • objectives of shari'ah.
  • terms of a valid sale contract
  • a contract of sale which is binding