ETR1103 BAI TAWARRUQ & ISTIJRAR

WHAT IS BAI TAWARRUQ ?

• A type of Islamic finance transaction

• A traditional market in the Middle East

• A form of agricultural contract

• A modern banking concept

WHAT IS BAI ISTIJRAR ?

• A type of loan agreement

• A contract for immediate delivery

• a type of sales contract where the buyer purchases goods without specifying the exact quantity or price at the time of the transaction

• A leasing contract

What is the primary objective of Bai Tawarruq?

• Profit maximization

• Wealth accumulation

• Facilitating transactions without interest

• Market speculation

What role does the seller play in Bai Istijrar ?

• Providing a supply contract

• Selling a commodity

• Leasing a property

• Actively engaging in a partnership

How does Bai Tawarruq differ from conventional loans ?

• It involves interest payments

• It is interest-free

• It only applies to agricultural transactions

• It is not regulated by Sharia principles

What is the example of Bai Istijrar ?

• A farmer selling his crops directly to consumers

• KFC buy chicken from supplier

• A student borrowing money from a bank for education

• A person exchanging goods with another without involving currency