CTU351- ISLAMIC BANKING (CHAPTER 1, 2 & 3)

What is meaning of Gharar?

• Guarentee

• Uncertainty

• Gambling

• Interest

What is the primary difference between Islamic banking and conventional banking?

• Islamic banking allows the use of interest in financial transactions.

• Islamic banking prohibits the use of interest (Riba) in financial transactions.

• Conventional banking only provides loans for investment.

• Islamic banking only deals with the personal savings of Muslims.

Which of the following is a fundamental principle of Islamic finance?

• Profit is guaranteed in every transaction

• Interest (Riba) is allowed on loans and deposits.

• Risk-sharing is a key element.

• Money can be invested in any business venture.

The second Islamic bank in Malaysia.

• Bank Islam

• Bank Rakyat

• Bank Bumiputera Commerce

• Bank Muamalat

What is the main objective of (IFSA) 2013?

• To regulate insurance and takaful only

• To consolidate laws relating to Islamic financial institutions, payment systems, and Islamic money markets

• To promote foreign investments

• To manage the taxation of Islamic financial products

The government established Bank Islam along with an Act to oversee its banking operations. Which Act is used?

• Islamic Banking Act 1982

• Company Act 1965

• Islamic Banking Act 1983

• Islamic Banking Act 1984

What is the total number of verses contained in the Quran?

• 6109 Ayat

• 6999 Ayat

• 6666 Ayat

• 6236 Ayat

What is a "Mudarabah" contract in Islamic finance?

• A partnership where one party provides capital and the other provides expertise.
  

• A lease agreement for using assets.

• A loan agreement where the lender receives interest.

• A trade agreement where the buyer pays in installments.

In Islamic banking, what is the concept of "Maysir"?

• Risk-sharing in investments.

• Gambling

• Profits shared between two partners.

• The rate of return on investment.

The first Islamic banking institution in the world is

• Al-Rajhi Bank

• Faisal Islamic Bank

• Mitr Ghamr Local Savings Bank

• Bank Sudan