CHAPTER 3 NORMS IN FINANCIAL SYSTEM

What is the primary focus of ethics in the Islamic financial system?

• Maximizing profits at all costs

• Ensuring compliance with government regulations

• Maintaining ethical standards

• Minimizing operational costs

Which of the following is NOT one of the seven classes of fairness in the financial system?

• Freedom from coercion

• Right to equal information

• Right to unlimited profit

• Freedom from misrepresentation

What does the term 'Riba' refer to in Islamic finance?

• Profit-sharing

• Investment

• Charity

• Interest

Which principle emphasizes the importance of social responsibility in Islamic finance?

• Profit maximization

• Risk avoidance

• Fulfillment of social responsibilities

• Market competition

What is the significance of the Shariah Audit Board (SAB) in Islamic financial institutions?

• To reduce operational costs

• To increase profits

• To ensure compliance with Shariah principles

• To manage customer relations

Which of the following is a guiding principle of the Islamic financial ethics framework?

• Utilitarianism

• Tawḥid

• Capitalism

• Social Darwinism

What does 'Gharar' refer to in the context of Islamic finance?

• Investment opportunities

• Risk and uncertainty

• Profit-sharing

• Financial inclusion

Which of the following is a norm relating to Mutual Cooperation (Ta’awun)?

• Promoting individualism

• Maximizing personal profit

• Encouraging competition

• Assisting one another in good deeds

What is the role of the Islamic Financial Services Board (IFSB)?

• To provide loans to businesses

• To regulate interest rates

• To promote conventional banking

• To monitor ethical practices in Islamic finance

Which of the following is a requirement for contracts in Islamic finance?

• They must be approved by the government

• They can be informal

• They must be written and witnessed

• They must be verbal agreements