ISLAMIC FINANCE OPERATIONAL PRINCIPLE

Which contract involves the sale of goods at a price that includes a profit margin agreed to by both parties?

• Bai Murabahah

• Ijarah

• Bai Istisna

• Hibah

What is the main difference between Murabahah and Bai Bithaman Ajil (BBA) contracts?

• Murabahah is for short-term financing, while BBA is for medium and long-term financing

• Murabahah is for the acquisition of assets, while BBA is for financing working capital

• Murabahah requires disclosure of cost and profit to them client, while BBA does not

• Murabahah involves deferred payment by the client, while BBA involves lump-sum payment

What is the purpose of the Islamic finance contract ljarah?

• To exchange a commodity for money

• To employ the services of a person

• To manufacture goods or

  commodities

• To hire assets or properties

Which lease-based contract involves leasing ending with ownership?

• Ijarah

• Al-ljarah Thumma Al-Bai

• Al-ljarah Muntahiya Bittamlik

• Al ljarah Al Bai'

Which contract involves the sale of goods at a price that includes a profit margin as agreed to by both parties, and is often confused with Bai Murabahah?

• Bai Istisna

• Bai Bithaman Ail (BBA)

• Ijarah

• Hibah

What does 'Bal' al-Sarf" in Islamic finance involve?

• Exchange of a commodity for money

• Exchange of property for property

• Exchange of money for services

• Exchange of money for money

Which of this following statement is not true about Murabahah Financing?

• Mandatory to disclose the cost of asset

• For financing working capital

• Deferred payment by instalments

• For short-term financing

Which type of sale in Islamic finance involves advance payment for goods to be delivered later?

• Bai' al Salam (forward sale)

• Murabahah

• Sale on spot

What is the main purpose of Bai Istisna (Sale by Order) in Islamic finance?

• To provide working capital financing

• To allow customers to acquire assets under construction.

• To facilitate short-term trade transactions.

What is the key difference between Bai Murabahah (Cost-plus sale) and Bai Bithaman Ajil (BBA)?

• Bai Murabahah is for short- term financing, while BBA is for long-term financing.

• Both involve advance payments

• Bai Bithaman Ajil involves disclosing the cost of the asset.