CHAP3 Islamic finance

. What are the two main components of the Islamic financial market in Malaysia?

- A) Islamic Banking and Conventional Banking

- B) Takaful and Derivatives

- C) Islamic Money Market and Islamic Capital Market

- D) Equity and Sukuk

• a

• b

• c

• d

2. Which of the following is NOT a function of the Islamic Money Market?

- A) Ensuring Islamic interbank liquidity according to Shariah

- B) Providing long-term financial instruments

- C) Dealing with the supply and demand of money in the short run

- D) Transaction involving Islamic short-term securities

• a

• b

• c

• d

3. What is the main objective of Takaful?

- A) Profit maximization

- B) Promoting mutual solidarity and cooperation

- C) Providing long-term investment options

- D) Currency exchange

• a

• b

• c

• d

4. Which of the following instruments is NOT part of the Islamic Interbank Money Market (IIMM) in Malaysia?

- A) Sukuk

- B) Mudarabah Interbank Investment

- C) Wadiah Acceptance

- D) Government Investment Issue (GII)

• a

• b

• c

• d

5. The Sharia Advisory Council (SAC) advises on Shariah matters for which market?

- A) Conventional Capital Market

- B) Islamic Capital Market

- C) International Financial Market

- D) European Capital Market

• a

• b

• c

• d

6. What is the basis for Shariah compliance in the Islamic Capital Market?

- A) Quantitative and qualitative assessment

- B) Profit maximization

- C) Interest-based transactions

- D) Conventional financial metrics

• a

• b

• c

• d

7. Which is a key feature that differentiates Sukuk from conventional bonds?

- A) Interest-based returns

- B) Ownership in underlying assets

- C) Fixed income instrument

- D) Unsecured debt obligation

• a

• b

• c

• d

8. What is the role of the Sharia Advisory Council in the context of Islamic financial business?

- A) To provide banking services

- B) To ascertain the Islamic law for financial matters

- C) To offer conventional financial advice

- D) To regulate international financial transactions

• a

• b

• c

• d

. Islamic Real Estate Investment Trusts (REITs) must comply with which principles?

- A) Conventional financing principles

- B) Shariah principles

- C) Western economic principles

- D) Asian market principles

• a

• b

• c

• d

10. Which of the following is an example of an Islamic equity market product?

- A) Islamic mutual funds

- B) Conventional bonds

- C) Interest-based savings accounts

- D) Credit cards

• a

• b

• c

• d