Islamic Finance Quiz

In Mudharabah, who bears the loss if the business fails?

• The business manager (Mudharib)

• The investor (Shahibul Maal)

• Both the investor and the manager

• The bank

Which Sharia financial contract is similar to leasing?

• Murabahah

• Ijarah

• Musyarakah

• Salam

In Murabahah, how does the bank make a profit?

• By charging interest on the loan

• By taking a percentage of the profit

• By selling a product at a higher fixed price

• By sharing business risks with the customer

Which financial contract allows a buyer to pay in advance for goods delivered later?

• Mudharabah

• Istishna

• Salam

• Ijarah

Musyarakah is best described as:

• A partnership where profits and losses are shared

• A loan given with a fixed repayment

• A contract where the bank rents out an asset

• A method of prepaying for goods

What is a secondary financial instrument?

• An instrument in the primary market

• An instrument that cannot be sold

• An instrument traded in the secondary market

• A debt-based instrument

What are the components of secondary financial instruments?

• Stocks, sukuk, and Islamic mutual funds

• Savings, deposits, and bank loans

• Waqf, grants, and charity

• Taxes, zakat, and donations

Why is margin trading prohibited in Islam?

• It uses a cash trading system

• It has no risk for investors

• It follows the profit-sharing principle

• It involves usury and high speculation

What is an alternative to margin trading?

• Conventional leasing

• Bai’ Mujj’al

• Interest-based credit

• Derivative-based hedging

What is bai’ muajjal?

• A sale with deferred payment

• A sale with an agreed profit margin

• An auction-based sale

• A sale without a clear contract