AQIF : Module 2 (Application of Shariah in Islamic Finance)

What is the technical definition of ownership (Milkiyyah) in Islamic law?

• A. The legal authority to dispose of a property

• B. The right to use a property without ownership

• C. The exclusive right to exclude others from using a property

• D. The legal authority to process the use of ownership rights

What is the main necessary condition for the subject matter of a contract in Islamic finance?

• C. Legality of the subject matter

• A. Existence of the subject matter

• D. Deliverability of the subject matter

• B. Precise determination of the subject matter

What is the technical definition of a sale contract (Bay') in Islamic law?

• C. The exchange of a leased asset for another with the exchange of ownership

• B. The exchange of an owned commodity for another without the exchange of ownership

• A. The exchange of an owned commodity for another with the exchange of ownership

• D. The exchange of a leased asset for another without the exchange of ownership

What is the main feature of a promise (Wa'd) in Islamic finance?

• C. It is a verbal proposition made by someone to undertake something to the benefit of another person

• D. It is a commitment made by one person to another to undertake a certain disposal beneficial to both parties

• B. It is bilateral in nature and binds both parties equally

• A. It is unilateral in nature and binds the promisor only

What is the main classification of mu'amalat contracts in Islamic finance?

• D. Contracts of exchange, contracts of security, and contracts of partnership

• A. Exchange contracts, partnership contracts, and other contracts

• B. Sale contracts, lease contracts, and gift contracts

• C. Bilateral contracts and unilateral contracts

What is the term used for a contract to sell to a purchaser a non-existent asset that is to be constructed, built, or manufactured according to agreed specifications and delivered on a specified future date at a pre-determined price?

• Bay' Salam

• Bay' Murabahah

• Bay' 'Inah

• Bay' Istisna'

In which type of lease contract does the ownership of the leased asset remain with the lessor even after the lease period?

• Operating Lease

• Ijarah Al- A'yan

• Finance Lease

• Ijarah al-‘Amal

What is the essential element of Ijarah related to the asset and usufruct?

• The asset must be recognised by Shariah, valuable, in existence, identifiable, accessible, and deliverable

• The price of the asset must be specified upfront during the initial stage of which the contract is being concluded

• The rental shall be determined and agreed at the point of execution of the Ijarah contract

• The asset must be known in term of genus, characteristics, and amount or quantity

Which type of sale contract involves the sale of an asset to the purchaser on a deferred basis and subsequent purchase of the asset at a cash price lower than the deferred sale price?

• Bay' Salam

• Bay' Murabahah

• Bay' 'Inah

• Bay' Istisna'

What is the term used for a contract that transfers ownership of a permitted usufruct and/or service for a specified period in exchange for a specified consideration?

• Bay' Murabahah

• Bay' Istisna'

• Bay' Salam

• Ijarah