Pop Quiz FIN546 Chap 3

Elements in Islamic capital market:

• Forex market

• Sukuk market

• Equity market

• Money market

Assets classes in Islamic equity market, except:

• REITs

• Crude palm oil

• Sukuk Ijarah

• Islamic ETFs

Steps for stock screening process for Shariah-compliance securities:

• Data collection

• Listed in Bursa

• Evaluation & report preparation

• Trading securities

_____ _______ act as the Malaysian banking and financial institutions supervisor as well as the Insurance and Takaful institutions

• Securities Commission

• Islamic Financial Services Board (IFSB)

• Bank Negara Malaysia (BNM)

• RAM Holding Berhad

IDB's objectives, except:

• Promotion of Islamic financial industry and institutions

• Provide rating for securities

• Poverty alleviation

• Promotion of cooperation among Muslim members

One of Objectives of AAOIFI:

• To foster the economic development and social progress in country accordance with the Shariah

• Provide short term training for industrial practitioners

• To develop accounting and auditing thoughts relevant to Islamic financial institutions

• Dedicated for postgraduate study on Islamic Finance.

Reasons Permitting the Inclusion of Mixed Companies in the List of Shariah Approved Securities:

• Changes in rulings due to changes in human nature

• To ensure that Muslims won’t be left behind to non-Muslims.

• Umum balwa

• All of them

Two elements for 5% benchmarks:

• Conventional insurance

• Share trading

• Gambling

• Hotel and resort operations

33% Financial Ratio Benchmarks are:

• Cash over Total Assets

• Equity over Total Assets

• Debt over Total Assets

• Profit over Total Assets

Qualitative method of evaluation in stock screening:

• calculate the percentage of haram activities to the group turnover (TO)

• calculate the percentage of haram activities to the group profit before tax (PBT)

• evaluate the public perception towards the companies

• calculate the percentage of haram activities to the group Balance sheet