FIN2563 - CHAPTER 1

Banking or banking action that is consistent with main beliefs of Shariah and its realistic application from beginning to end improvement of Islamic economics is

• Islamic banking

• Conventional Bank

• BIMB

• BNM

A number of Islamic banks were formed to provide to this particular banking market in late

• 19th century

• 18th century

• 20th century

• 21st century

Earliest Islamic bank was established in Malaysia in

• 1980

• 1999

• 1959

• 1983

A pioneering attempt, in Shariah compliant investments banking was undertaken in 1963 in

• Southern India

• Egypt

• Dubai

• Cairo

Banks are dealing a large number of commodities and services and facing a strong competition to attract

• potential customers

• potential buyers

• potential employees

• potential sellers

Islamic banks 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

Which of the following is not a source of fund for Islamic banks?

• current accounts

• saving account

• account receivables

• investment account

Investment accounts operated by Islamic banks are based on the concept of:

• wadiah

• mudharabah

• musyarakah

• murabahah

Any form of banking and financial institution that is consistent with the principles of the Shariah can be referred to as Islamic Bank or Financial Institution.

• true

• false

The differences between Islamic bank and conventional bank are

• the prohibition of riba (interest, usury), gharar (excessive uncertainty) and haram (impermissible) activities

• the implementation of profit and loss sharing (PLS) principle.

• the emphasis on productivity and real economic activity (rather than credit worthiness)

• all of the above