Islamic Banking and Finance - 1

The first ever Islamic financial institution established in the 1960s outside the MENA region is:

• Mit Ghamr Savings Bank

• Dubai Islamic Bank

• Bank Islam Malaysia

• Tabung Hajj Malaysia

Which of the following are not included as activities or services that the Islamic Development Bank do?

• Assist member countries in the development of their infrastructure when called upon through interest free loans

• Provide adequate aid when natural disaster or a calamity has affected the member countries

• Contribute in the establishment of supporting infrastructure organizations for the Islam banking and finance industry

• Provide multilateral finance and commercial banking services for the public in order to enhance product development in Islamic banking

Knowledge and understanding of practical Shariáh laws derived from particulars of supporting evidence is the definition of:

• Usul Al Fiqh

• Fiqh

• Shariáh

• No correct answer

The actions, words, behavior, or tacit approval of the Prophet Muhammad SAW is considered to be the

• Quran

• Sunnah

• Qiyas

• Ijma'

An Islamic bank should not promote and advertise their debt products to the general public too aggressively and make people adore the debt culture even more. If this is still done it means that the Islamic banks is not putting effort in achieving one of the objectives of the Shariah (maqasid al Shariah) which is specifically:

• To achieve justice

• To educate people

• To protect public interest

• No correct answer

Riba which is related to the exchange of certain type of goods/commodities that involve different counter value and or deferred delivery is:

• Riba Al Fadl

• Riba Al Nasi'ah

• Riba Al Jahiliyyah

• Riba Al Duyun

In Murabahah financing, when an orderer is asked to pay a certain amount of money in advanced to the seller in order to show seriousness towards the transaction that can later be refunded upon certain conditions, the contract used is called:

• Arboun

• Hamish Jiddiyyah

• Down payment

• All options are correct

The contract in Islamic banking that is related to the agricultural goods is:

• Istisna'

• Musharakah

• Salam

• Ijarah

Savings and Investment accounts offered by Islamic banks such as the case of BISB and KFH utilize the contracts below, except:

• Mudharabah Muqayyadah

• Ijarah

• Mudharabah Mutlaqah

• Wakalah

Which of the following is not considered to be one of the necessary conditions of Mudharabah?

• Profit is to be shared according to the profit sharing ratio determined at the inception of the contract

• The capital provided cannot pay a periodical salary to the mudharib

• Loss is to be borne by the capital provider in all cases, even if it is due to the negligence of the mudharib

• Sub-Mudharabah is not allowed without the permission of the capital provider