GHARAR and RIBA

Riba al-Fadl refers to a delay in the settlement of one or both counter-values.

• TRUE

• FALSE

Exchanging US$105 with AUD$100 on the spot (hand to hand, without delay) is permissible.

• TRUE

• FALSE

Gharar refers to uncertainty and deception (amongst other things).

• TRUE

• FALSE

The flesh of a dead animal is not considered a property of value to a Muslim.

• TRUE

• FALSE

Which of the following statements is FALSE?

• Gharar is allowed in Islamic transactions provided one of the parties has agreed to the condition.

• The availability of criteria that involves betting upon the happening of uncertain future event may constitute the Islamic contract as valid.

• Non-muslim can take Islamic financing.

• Shariah requirements must be observed to ensure Islamic contract is permissible.

Contracts involving gharar yasir are permissible and valid.

• TRUE

• FALSE

Gharar is allowed in Islamic transactions provided one of the parties has agreed to the condition.

• TRUE

• FALSE

All the following are the major gharar EXCEPT

• asset or property does not exist

• asset or property is not free from encumbrances

• Price not mentioned in absolute amount

• It happens to the ancillary object (appendages) only (not the principal and main subject matter of contract)

The form of riba prohibited in the Qur’an is riba al-fadl, the exchange of superior goods with more inferior ones.

• TRUE

• FALSE

While riba al-nasi’ah relates to exchange (trade), riba al-fadl relates to Debt (loans).

• TRUE

• FALSE