Chapter 3 Islamic Money Market

Which of the following is a Shariah-compliant short-term debt instrument issued by the Malaysian government?

• Sukuk Al-Ijarah

• Malaysian Islamic Treasury Bills (MITBs)

• Islamic Negotiable Instruments of Deposit (INID)

• Islamic Accepted Bill (IAB)

In a Commodity Murabaha transaction, the selling price includes:

• Cost plus a profit margin

• Interest payments

• Only the cost price

• A discount on the commodity

Which instrument allows a financial institution to manage liquidity by issuing negotiable debt based on Shariah principles?

• Qard

• Negotiable Islamic Debt Certificate (NIDC)

• Mudarabah

• Wakalah

True or False: Islamic Negotiable Instruments of Deposit (INID) generate interest for the investor.

• True

• False

The underlying principle used in a Wakalah contract is:

• Profit-sharing

• Agency

• Leasing

• Sale of debt

Which of the following is not a characteristic of Malaysian Islamic Treasury Bills (MITBs)?

• They are issued at a discount.

• They are Shariah-compliant.

• They pay fixed interest to investors.

• They are short-term debt instruments.

Fill in the blank: In an Islamic Accepted Bill (IAB), the bank typically finances trade-related activities such as __________.

Which of the following describes the main function of Wadiah in the Islamic money market?

• Interest-free loan

• Profit-sharing partnership

• Safekeeping of funds

• Sale and buyback arrangement

In a Mudarabah agreement, the two parties involved are:

• Lender and borrower

• Agent and principal

• Investor and entrepreneur

• Buyer and seller

Which of the following instruments is based on the forward sale of goods with upfront payment?

• Istisna'

• Bai' al-Salam

• Murabaha

• Ijarah