Islamic Banking Products Set 2 MCQs

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