Asset Securitization Quiz

What is the process of issuing certificates of ownership against an asset, investment pool, or business enterprise called?

• Cash flow

• Asset Securitization

• Risk sharing

• Debt trading

In Islamic Securitization, how are investors rewarded?

• With interest income

• With capital gains

• With profit from direct exposure to risk

• With dividends

What is the main criterion for assets in the securitization process according to the Rahn Principles?

• Historical significance

• Physical size

• Market value

• Fixed cash flow

What does the Mal Principle refer to in the context of asset securitization?

• Assets that are prohibited by Shariah

• Assets with no value

• Assets that can be utilized according to Shariah

• Assets owned by non-Muslims

What is the term used in Islamic law for debt trading?

• Bai` Dayn

• Rahn Principles

• Sukuk

• Wathiqah Dayn

What does the term 'Sukuk' represent in Islamic finance?

• Certificates of equal value

• Debt instruments

• Ownership of intangible assets

• Undivided shares in a project

What is the function of Wathiqah Dayn in the Islamic capital market?

• To provide credit ratings

• To represent total share ownership

• To facilitate debt trading

• To issue interest-bearing securities

What is the purpose of the SPV in the basic structure of Sukuk?

• To hold the underlying assets

• To issue certificates

• To distribute profits

• To represent investors

What is the main benefit of asset securitization for the Capital Market?

• Increased risk for investors

• Higher financing costs

• Limited product choices

• Diversification of financing sources

What is the key difference between Islamic and Conventional Securitization?

• Recourse to the seller vs. recourse to the assignor

• Interest income vs. dividends

• Risk shifting vs. risk sharing

• No administrative standards vs. specific standards