Islamic Capital Market

What is Islamic finance?

• Financial business that only benefits Muslims

• Financial business that is not contradictory to the principles of Shariah

• Financial business that is based on interest

• Financial business that is contradictory to the principles of Shariah

What is the Capital Market?

• A market where only individuals trade financial securities

• A market where only institutions trade financial securities

• A market where individuals and institutions trade financial securities

• A market where only governments trade financial securities

What is the importance of capital markets in the Islamic financial system?

• Prohibits trade and encourages interest

• Prohibits interest and encourages trade

• Encourages both interest and trade

• Prohibits both interest and trade

What are examples of Syariah Approved Securities?

• Tech Stocks, Real Estate Investment Trusts, and Mutual Funds

• Islamic Share/Stoks/Equity, Sukuk, and Gold Investment

• Foreign Currency Exchange, Options, and Penny Stocks

• Oil Futures, Government Bonds, and Cryptocurrency

When was the Securities Commission Malaysia established?

• 1990

• 1993

• 2000

• 2005

What is the purpose of the Shariah Advisory Council (SAC) of the Securities Commission?

• To determine Shariah compliant stocks and the Shariah Index

• To promote non-Shariah compliant stocks

• To regulate non-Islamic financial institutions

• To encourage interest-based investments

What is the Business Activity Benchmark used for?

• To evaluate the company's marketing strategies

• To compute the percentage contribution of non-permissible activities to the company's total assets

• To determine the company's profit margins

• To assess the company's employee satisfaction

What is the Financial Ratio Benchmark used for?

• To measure the company's social responsibility initiatives

• To refine the selection of Shariah compliant stocks

• To assess the company's customer service quality

• To compare the company's revenue with industry standards

What is the threshold level allowed by the SAC for non-permissible activities in a company's core activity?

• 1% - 5%

• 40% - 60%

• 5% - 20%

• 20% - 40%

What should be the maximum percentage for the financial ratio benchmark to consider a stock Shariah compliant?

• 25%

• 50%

• 33%

• 10%