Quiz on Islamic Banking and Finance

What is the literal meaning of 'Riba'?

• Debt

• Loan

• Excess, increase, expansion, growth

• Interest

Which of the following is NOT a type of Riba?

• Riba al-Fadl

• Riba al-Mudarabah

• Riba al-Bay'

• Riba al-Qard

According to the Quran, what is the stance on Riba?

• It is encouraged

• It is prohibited

• It is allowed under certain conditions

• It is optional

What does 'Riba al-Qard' refer to?

• Profit-sharing

• Debt with predetermined excess

• Excess in sale transactions

• Interest on loans

Which scripture also prohibits usury besides the Quran?

• The Vedas

• The Bhagavad Gita

• The Bible

• The Torah

What is the primary objective of contracts in Islam?

• Maximizing profit

• Al-bay (exchange and benefits of counter-value)

• Minimizing risk

• Avoiding debt

What is 'Murabahah' in Islamic finance?

• A leasing agreement

• A type of interest loan

• A cost-plus sale agreement

• A profit-sharing contract

Which of the following is a characteristic of 'Gharar'?

• Certainty in contracts

• Uncertainty in contracts

• Guaranteed returns

• Fixed interest rates

What does 'Maysir' refer to in Islamic finance?

• Investment

• Gambling

• Charity

• Trading

What is the main rationale for the prohibition of Riba?

• To support economic growth

• To encourage lending

• To ensure fairness and justice in transactions

• To promote wealth accumulation