ICEBREAKER FIN546

Which principle distinguishes Islamic finance from conventional finance?

• Profit sharing
• Interest-based lending
• Risk sharing
• Fixed returns
• Pluto

Answer explanation

Islamic finance emphasizes risk sharing over interest-based lending.

What does the term 'Shariah' refer to?

• Islamic law
• Financial investment
• Profit distribution
• Risk management

Answer explanation

Shariah is the moral and legal framework guiding Islamic life, including finance.

Which of these is prohibited in Islamic finance?

• Interest (Riba)
• Equity investment
• Profit sharing
• Risk management

Answer explanation

Riba (interest) is not allowed in Islamic finance as it leads to unjust enrichment.

What motivates you most to study Islamic Finance?

• Career opportunities
• Interest in ethics
• Social impact
• Cultural/religious interest

In one word, describe what Islamic Finance means to you.

Islamic finance promotes risk (a)   between parties.

Answer explanation

The key idea is that risks should be shared among all parties involved.

What does "Halal" mean in Islamic finance?

• Permissible
• Forbidden
• Uncertain
• Unimportant

Answer explanation

Halal refers to what is permissible under Islamic law.

Which Islamic financial instrument is similar to a conventional bond?

• Sukuk
• Murabaha
• Ijarah
• Mudarabah

Answer explanation

Sukuk are Islamic bonds structured to comply with Shariah law.

Which profit-sharing mode in Islamic finance involves a partnership where one party provides capital and the other provides expertise?

• Mudarabah
• Murabaha
• Ijarah
• Salam

Answer explanation

Mudarabah is a profit-sharing arrangement where one party invests and the other manages the business.

Which Islamic festival marks the end of Ramadan?

• Eid al-Fitr
• Eid al-Adha
• Ramadan
• Laylat al-Qadr

Answer explanation

Eid al-Fitr is celebrated at the end of Ramadan, marking the conclusion of fasting.