Essential of Islamic Banking & Finance Quiz

Essential elements of a valid contract are the following, EXCEPT;

• Expression of offer (ijab) and acceptance (qabul)

• Contracting parties must be a Muslim

• Mutual consent of the contracting parties

• Existence of the subject matter

Below is Mudarabah Investment account process flow. Kindly re-arrange the process flow?

i.       Customer as the capital provider places money into investment account        

ii.      Bank as entrepreneur manages the investment

iii.     In the event of profit, it will be distributed between the bank and the investor based on agreed Profit-Sharing Ratio (PSR). However, in the event of losses, investor bears the entire losses.

• iii only

• ii, iii, i

• ii, i, iii

• i, ii, iii

The following are the conditions of subject matter /underlying asset, EXCEPT?

• Does not necessarily owned by the Seller

• Acceptable and Contain Value from Shariah & Law perspectives

• Capability to be delivered

• Known to both parties in term of price, type, amount and quality of the goods

• In existence

Which of the following deposit facilities are under Qard contract?

i.  Prosperous Now! Account-i (PNA-i)
ii.  Islamic Fixed Deposit-i (IFD-i)
iii.  General Investment Account-i
iv.  Master Foreign Currency Account-i
v.  Basic Savings Account-i

• a.  Prosperous Now! Account-i (PNA-i)

• b.  Islamic Fixed Deposit-i (IFD-i)

• a.    Imteen-i

• d.  Master Foreign Currency Account-i

Which of the following facilities applying Commodity Murabahah (CM) contract for Islamic Deposits?

i.  Prosperous Now! Account-i (PNA-i)
ii.  Islamic Fixed Deposit-i (IFD-i)
iii.  General Investment Account-i
iv.  Master Foreign Currency Account-i
v.  Basic Savings Account-i

• i, ii & iii

• ii, iii & iv

• i, ii & v

• iii & iv

All profit generated from Mudarabah contract placement will be shared according to __________ between ___________. Can the Bank promise the profit/ dividend to customers upfront?

• a. Profit Sharing Ratio, Bank & Customer. Yes, Profit rate/ dividend can be promised to customer.

• b. Mutual Agreement Profit Sharing Ratio, Bank & Customer. No, Profit rate /dividend cannot be promised to customer.

• c. Risk Appetite, Bank Negara Malaysia & Customer. No, Profit rate/ dividend cannot be promised to customer.

• d. Bank Discretion, all Mudarabah account holder. Yes, Profit rate/ dividend can be promised to customer.

The practice of Islamic Banking and finance is based on Shariah principle. The followings are the salient features of Islamic and finance;

i.        All transaction shall be free from Riba, Gharar and Maysir

ii.        The relationship between the Bank and the Customer is the same as conventional banking.

iii.        All assets involved in Islamic banking and finance must be legal and Shariah compliant.

iv.        The assets in the transaction of Islamic banking and finance must be in existence.

• a.    i, ii, iii, iv

• b.    i, ii, iii

• c.    i, iii, iv

• d.    ii, iii, iv

Mu'amalat is a part of Islamic jurisprudence, or fiqh. Sources agree that muamalat includes Islamic "rulings governing commercial transaction. What is Mu'amalat means for in Islamic Banking.

• Not allowed to participate in business, activities and transactions involves with elements of interest, uncertainty, gambling, and other impermissible activities.

• Sale of item that has unknown value, existence, or deliverability, deceitful or ambiguous terms, hidden fees and charges.

• Provides much of the basis for Islamic economics, and the instruments of Islamic financing, and deals not only with Islamic legality but also social and economic repercussions and the rationale of its prohibitions.

• A sale contract with a disclose of the asset cost price and profit margin to the buyer.

Which of the following are the definitions of Islamic Banking business based on Islamic Financial Services Act 2013(IFSA 2013):

i. Accepting money under an investment account

ii. Foster fair, responsible and professional business conduct of Islamic Financial Services.

iii. Accepting Islamic deposits on current account, deposit account, savings account or other similar accounts, with or without the business of paying or collecting cheques drawn by or paid in by customers.

iv. Provision of finance

v. Provision of Takaful

• a.      i , ii, iii

• b.    i,iii,iv

• c.    iii. iv, v

• d.    i, iii, iv ,v

The practice of Islamic Banking and finance is based on Shariah principle. The followings are the salient features of Islamic and finance;

i. All transaction shall be free from Riba, Gharar and Maysir

ii. The relationship between the Bank and the Customer is the same as conventional banking.

iii. All assets involved in Islamic banking and finance must be legal and Shariah compliant.

iv. The assets in the transaction of Islamic banking and finance must be in existence.

• a.      i,ii,ii, iv

• b.    i,ii ,iii

• c.    i, iii, iv

• d.    ii, iii, iv