Day 4 Islamic Finance - 1 Quiz

Which of the following bay' al amaanah contracts involve selling a product at cost price?

• Bay' al murabahah

• Bay' al tawliyyah

• Bay' al wadi'ah

• None of the above

The Islamic contract that is used by Islamic banks to offer personal loans or to create liquidity is:

• Organised tawarruq

• Salam financing

• Murabahah financing

• Ijarah

Which of the following is incorrect related to the contract of Murabahah?

• Penalty that is charged to customers in murabahah could not become a source of income for the bank

• Murabahah can also include a security or rahn just in case of default of the customer

• Rebates on earlier payment in a murabahah must be stipulated in the contract

• Commodity murabahah or tawarruq is considered a derivative of the contract of murabahah

Which of the following is the legal foundation of Ijarah?

• Al Qasas 26-27 on the story of Nabi Musa and Nabi Syu'aib

• Al Talaqf 6 on breastfeeding and payment of a fee

• Al Kafh 77 on compensation for work on building a wall

• All of the options are legal foundations of Ijarah

Ijarah that involves a transfer of ownership at the end of the contract from the lessor to the lesse is:

• Ijarah Muntahia Bittamleek

• Ijarah wa Iqtina'

• Ijarah thumma al bay'

• All of the options provided involve transfer of ownership

Which of the following is not a necessary condition in Ijarah?

• As an owner, the lessor will bear all liabilities arising from the ownership

• The lessee shall act as a trustee of the lessor in treating the leased property properly

• the subject matter of Ijarah must have a valuable use, thus, a thing having no usufruct at all cannot be leased

• Sub leasing in all situations is not permissible

Which application of ijarah is related to the Islamic capital markets?

• Ijarah credit cards

• Operational Ijarah

• Ijarah lease-back sukuk

• Ijarah mawsuufa fii dhimmah

The following are products that can be made as a subject matter of salam, except:

• Rice

• Dates

• Aluminium

• Diamonds