Revision IMU600

Choose 3 functions of the Islamic Capital Market.

• Contributes to economic growth

• Play a complementary role to the Islamic banking and takaful sectors

• Facilitates the available of liquidity by enabling secondary trading of security

• A compulsory knowledge of investment in gaining wealth

Which of the following is NOT CORRECT of duties of Shariah Committee towards Islamic financial institution?

• To endorse Shariah compliance manuals

•    To endorse and validate relevant documentation

• To assist related parties on Shariah matters for advice upon request explanation.

• To remunerate the members of the Shariah Committee accordingly

Which of the following is NOT a unique risk?

• Rate of return risk

• Equity investment risk

• Shariah non-compliance risk

• Liquidity risk

"The risk arises from entering into a partnership for participating in a particular financing or general business activity as described in the contract". The statement is referring to......

• Market risk

• Equity investment risk

• Displaced commercial risk

• Credit risk

Which of the following is NOT main features of bai' wafa ?

• The asset traded is not an asset obtained through musya'

• The buyer can utilise and benefit from the property bought through wafa'.

• sale of non existent of an object

• The buyer cannot transfer the right of ownership of the property to another person.

Choose 2 reasons companies get listed in Bursa Malaysia.

• Higher Profile

• Popularity

• Increase production efficiency

• Firms' Expansion

Which of the following is the responsibility of management company in i-REIT?

• Setting strategic direction and recommend potential possession of investment

• Act as a guardian of the asset and preserve the unitholder interest

• maintain property maintenance and management services

• ensure the activities of Shariah compliance

Choose 2 disadvantages of Exchange Traded Funds.

• Low transparency

• bound to ups and downs of the market

• The risk of tracking error

• Cannot be traded at anytime during trading hours of the stock exchange

Which of the following is INCORRECT about the differences between asset backed sukuk and asset based sukuk?

• The primary source of income derived from asset in asset backed sukuk.

• Asset based has rating based on the strength cash flow of the asset

• Asset based has beneficial ownership with no right to dispose the asset.

• Asset backed is off balance sheet.

Choose 3 issues that can be resolved using futures products.

• Price mechanism bias

• Operational risk

• Counterparty risk from forward contract

• Double coincidence of wants