Understanding Islamic Finance Principles

What is the meaning of the Islamic legal maxim "المشقة تجلب التيسير" (Hardship begets facility)?

• Hardship requires punishment

• Hardship leads to ease or facilitation

• Hardship results in financial penalties

• Hardship should be avoided at all costs

Which of the following is an example of the application of "المشقة تجلب التيسير" in Islamic finance?

• A lender can charge interest if the borrower faces financial difficulty

• A loan agreement is automatically void if it causes hardship

• A loan repayment can be deferred for a borrower facing financial hardship

• The lender can seize assets immediately upon default

In Islamic finance, what happens if a person is unable to fulfill a financial obligation due to hardship, in light of the maxim "المشقة تجلب التيسير"?

• They will be penalized according to the contract terms

• The obligation may be reduced or extended due to the hardship

• The person will be jailed

• The contract is automatically void

Which of the following reflects the principle of "المشقة تجلب التيسير" in Islamic finance concerning a creditor's rights?

• A creditor must apply the original terms of the contract without deviation even in hardship

• A creditor must offer a reduction in principal when the borrower is in financial distress

• A creditor may extend the payment period or provide other facilitation to ease the borrower's burden

• A creditor must seek legal retribution as soon as there is hardship

How does "المشقة تجلب التيسير" apply to the concept of Riba (interest) in Islamic finance?

• Riba becomes permissible if the borrower is in financial distress

• Riba is always prohibited, even in cases of hardship

• A temporary delay in payment of Riba is allowed in cases of hardship

• Riba is forgiven if the lender understands the borrower's situation

When a contract in Islamic finance becomes difficult or impossible to execute due to unforeseen hardship, which of the following is allowed under the maxim "المشقة تجلب التيسير"?

• The contract is automatically canceled without any penalties

• Modifications to the terms of the contract are permissible to accommodate the hardship

• The party responsible for the hardship must still meet all contractual obligations

• The contract becomes void, and all money is forfeited

In Islamic finance, which of the following is a practical example of applying "المشقة تجلب التيسير"?

• Offering an interest-free loan to a borrower who faces a financial crisis

• Requiring a borrower to pay the full loan amount immediately even if they are facing hardship

• Increasing the interest rate to cover for the risk of non-payment

• Demanding collateral when the borrower is in financial difficulty

What does "المشقة تجلب التيسير" imply in terms of Islamic inheritance law when a person is unable to distribute their estate due to illness or incapacity?

• The estate should be left undistributed

• The individual may appoint an executor to manage the distribution in their stead

• The inheritance is automatically distributed among heirs by the state

• The person's estate remains frozen until they recover

Which of the following scenarios is consistent with the maxim "المشقة تجلب التيسير" in Islamic finance?

• An individual is allowed to take out an interest-bearing loan in cases of extreme financial distress

• A borrower can extend the payment term of a non-interest-bearing loan without penalty in case of hardship

• A person in financial distress must pay an additional penalty to make up for delayed payments

• The creditor has the right to enforce stricter terms during hardship

How does "المشقة تجلب التيسير" apply to Islamic banking when a borrower is unable to make payments due to a sudden crisis such as a natural disaster?

• The bank may require the borrower to repay the full loan immediately

• The bank may extend the repayment period or offer a temporary deferment of payments

• The bank can charge interest on the loan due to the hardship

• The bank can seize the borrower's property immediately