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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