Chap 1: Islamic Banking Quiz

What does Islamic banking avoid?

• Riba (interest)

• Profit-sharing

• Investing in businesses

• Savings accounts

Which bank was the first Islamic bank established?

• Islamic Development Bank

• Bank Islam Malaysia Berhad

• Mit Ghamr Bank

• Nasser Bank

What is the main principle of Islamic banking?

• Making high profit for the business

• Following Shariah principles

• Investing in any business

• Avoiding all risks

What does Sukuk represent?

• A charity fund

• A type of loan

• An Islamic bond

• A saving product

What is Takaful?

• A type of loan

• Islamic insurance

• A savings plan

• A conventional bank

Which act regulates Islamic financial institutions in Malaysia currently?

• Central Bank Act 2009

• Banking Act 1973

• Islamic Financial Services Act 2013

• Islamic Banking Act 1983

What is the role of the Shariah Committee?

• To compete with conventional banks

• To handle customer complaints

• To punish the non-compliance

• To ensure compliance with Islamic principles

What is Murabahah?

• A profit-sharing contract

• A savings account

• A transfer of debt

• A cost-plus financing

Which regulatory body oversees Islamic banking in Malaysia?

• Securities Commission

• Labuan Authority

• Bank Negara Malaysia

• Ministry of Finance

What does Islamic banking focus on?

• High-risk investments for business

• Profit-sharing and ethical finance

• Maximizing profits for the institution only

• Interest-based loans