Islamic Financial Products Quiz

What is the main characteristic of Wadia in Islamic finance?

• Fixed interest rate for depositors

• Remuneration of account management for FI

• Inflation protection for poor savers

• Depositor has a right on return of the amount deposited

In Mudaraba, what does the investor provide?

• Only capital

• Capital and expertise

• Only expertise

• Capital and will bear loss

What determines the profit in Murabaha?

• Actual selling price of the product

• Cost of goods sold

• Market demand

• Fixed profit margin

What is the main challenge in Musharaka when some business partners bring in in-kind capital or expertise?

• Valuing in-kind capital over time

• Managing premium levels

• Regulating and taxing income generation

• Difficulty in calculating real profitability

What type of sale is Bai Muajjil?

• Sale of goods to be delivered in the future

• Sale before manufacture

• Sale with deferred payment

• Sale with advanced payment

What is Istisna related to in Islamic finance?

• Sale with deferred payment

• Sale with advanced payment

• Sale before manufacture

• Sale of goods to be delivered in the future

What is the main challenge in Takaful for the insurer?

• Re-investing part of the premium

• Managing premium levels

• Actuary work in informal sector

• Competition with other insurers