money and interest

Ahmad bin Hanbal reported that, if people adopt something as money, it should be .....

• portable

• divisible

• acceptable

• durable

What is the problem of barter exchange?

• have a common measure of value

• divisibility of goods

• extinction of the goods

• non-proportionality of exchangeable objects

The following scholars discuss about money as a medium of exchange EXCEPT..?

• Imam Abu Yusuf

• Qudamah bin Ja'far

• Ibn Taymiyah

• Averroes

What is bimetallic standard?

• a way of describing the perceived or true value of an asset

• lowering the value of a currency

• a monetary system in which a government recognizes coins composed of both gold or silver as legal tender

• currency produced outside of the legal sanction of a state or government

Gold is suitable to work as money and used as a common denominator for transactions. Which of the following is not the characteristic which defined gold as money?

• durable

• secure from theft

• easy minting

• available in a reasonable quantity

Ibn Taymiyah mentioned two important functions of money. What are they?

• store of value, medium of exchange

• unit of account, measurement of value

• store of value, measurement of value

• measurement of value, medium of exchange

Which of the following philosophers ARE NOT expressing their ideas about money based on Greek philosopher Aristotle ideas of "money as a common denominator between producers to established equality"?

• Ibn Rushd

• al-Ghazali

• Jalal al-Din al-Dawani

• Miskawayh

The Prophet Muhammad (pbuh) forbade to break the coins except for genuine reasons such as being defective. What is the term to explain this statement?

• indivisibility

• bimetallic standard

• debasement

• exploitation

What is Gresham's Law?

• Knowledge and intelligence are powerful drivers of wealth accumulation

• Where two different money units of the same face value by varying intrinsic value are circulated, bad money drives out the good money

• money arises spontaneously from use in trade and must be essentially cosmopolitan

What is the effect of debasement and counterfeiting of currency?

• scarcity

• hoarding

• monopolies

• Inflation