On This Page
This set of Islamic Financial Institutions Multiple Choice Questions & Answers (MCQs) focuses on Islamic Financial Institutions Set 1
Q1 | An Ordinance was propagates to permit establishment of
- mudaraba companies
- musharika companies
- murabah companies
- all of answers are correct
Q2 | Negotiation of a selling price among two parties exclusive of reference by seller toeither costs or asking price is
- ijarah wa iqtna
- ijarah
- musawamah
- musharika
Q3 | What is the most widely used Islamic mode of financing in asset side operation ofIslamic banks?
- murabaha
- ijarah
- salam
- diminishing musharakah
Q4 | The following items are major components of Islamic banking and finance except
- islamic banking
- takaful (insurance)
- stock exchange
- capital market
Q5 | Islamic bonds can be rated on the two basis
- long term and short term
- sovereign and corporate
- public and private
- none of the above
Q6 | Who bears the loss in wakalah
- principal
- wakeel
- both together
- none of the above
Q7 | Securitization possible in
- murabaha
- ijara
- both a and b
- none of the above
Q8 | Islamic bank rely on the following two major sources of funds
- transaction deposits and accounts receivables
- investment deposit and current accounts
- accounts payable and investment accounts
- transaction deposits and investment deposits
Q9 | Which of the following is not a source of fund for Islamic banks?
- current accounts
- saving account
- account receivables
- investment account
Q10 | Investment accounts operated by Islamic banks are based on the concept of
- wadiah
- hibah
- mudrabah
- murabahah
Q11 | Expression Finance Certificates & Certificate of Investment in Musharika is
- liability side financing
- liability
- assets
- assets side financing
Q12 | 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
Q13 | Banking or banking action that is consistent with main beliefs of Shariah and itsrealistic application from beginning to end improvement of Islamic economics is
- islamic banking
- development bank
- conventional banking
- b& c
Q14 | A bank is considered as a custodian and trustee of money is
- wadiah
- safekeeping
- a & b
- hibah
Q15 | The appointment of shari ah scholar is done by
- shareholders at annual general body meeting
- the board of directors on behalf of the shareholders
- by the relevant government authority like cma
- all of the above
Q16 | Earliest Islamic bank was established in Malaysia in
- 1980
- 1983
- 1982
- 1988
Q17 | A type of partnership where one party offer funds while other gives expertise andmanagement is
- murabaha
- musharika
- ijarah
- mudarabah
Q18 | Shirkat-ul-wujooh has its origin in Arabic word
- wajahat
- wajahee
- waujooh
- wajhee
Q19 | Word Musharika is originated from the
- latin word
- arabic word
- persian word
- french word
Q20 | International bodies dedicated to enhancing Islamic finance industry include
- the international financial islamic financial market
- islamic financial service board
- accounting and auditing organization for islamic financial institutions
- all of the above
Q21 | _____ is not a major component of the Islamic banking and finance industry.
- islamic banking
- conventional insurance
- islamic capital markets
- islamic non-bank financial institutions
Q22 | Examples of Islamic non-bank financial institutions include:
- islamic leasing and factoring companies
- islamic microfinance institutions
- waqf management institutions
- all of the above
Q23 | All financing in Islamic banking and finance can be conveniently classified under:
- sharing modes
- sale modes
- leasing modes
- any of the above modes
Q24 | Combination of capital is not compulsory is
- basic rules of capital in musharika
- basic rules of capital in ijarah
- basic rules of capital
- basic rules of capital in lease
Q25 | Phrase that is not related to books of Fiqh is
- shirkah
- ijarah
- musharika
- sharing