Islamic Financial System - Murabahah Quiz

What is the literal meaning of the word 'Murabahah'?

• Increase in capital

• Profit of trading

• Trust-based contract

• Exchange contracts

According to the Quran, what has Allah permitted and forbidden?

• Trading and fair consumption of wealth

• Riba and unjust consumption of wealth

• Riba and lawful business

• Trading and Riba

What are the pillars of Murabahah?

• Seller, Buyer, Goods, Profit, Acceptance

• Seller, Buyer, Goods, Price, Offer

• Seller, Buyer, Merchandise of Goods, Price, Sighah

• Seller, Buyer, Merchandise of Goods, Profit, Acceptance

What are the five important elements for the condition of Murabahah?

• Product and selling price, Contracting parties, Offer and acceptance, No interest, Valid contract

• Product and selling price, Contracting parties, Offer and acceptance, No gambling, Valid contract

• Product and selling price, Contracting parties, Offer and acceptance, No riba, Valid contract

• Product and selling price, Contracting parties, Offer and acceptance, No usury, Valid contract

What is the minimum amount of profit recommended in Murabahah?

• The amount that covers the buyer's expenses

• The amount that covers the seller's expenses

• The amount that covers the cost price

• The amount that covers business zakat and other expenses

What is the modern application of Tri-partied Murabahah?

• Used for financing assets like car and house

• Used for bank's treasury product

• Used for international trade financing

• Used for issuance of sukuk murabahah

What is the definition of Sukuk in the context of Islamic finance?

• Ownership of assets with no cash flows

• Participation securities with ownership of assets and cash flows

• Trust certificate with no cash flows

• Participation securities with no ownership of assets

What is the mechanism of conducting Murabahah with complete sincerity and trust?

• Disclosing the cost price and total profit incurred clearly and truthfully

• Hiding the cost price and total profit incurred

• Not disclosing the cost price and total profit incurred

• Charging a fixed amount of profit

What is the evidence from the Quran for the legitimacy of Al-murabahah?

• Both Al-Baqarah: 275 and Al-Nisa’: 29

• Al-Baqarah: 275

• None of the above

• Al-Nisa’: 29

What is the evidence from the Hadith for the legitimacy of Al-murabahah?

• Abu Bakar buying camels for the journey

• Both Prophet(s.a. w) preparing for hijrah to Madinah and Abu Bakar buying camels for the journey

• None of the above

• Prophet(s.a. w) preparing for hijrah to Madinah