11_Islamic Banking: Istishna and Salam

What is Al-Istishna primarily concerned with?

• A rental contract

• A contract for the sale of goods based on orders

• A type of investment

• A loan agreement

In an Istishna contract, who is the al-Mustashni?

• The buyer

• The seller

• The producer

• The bank

What is one of the payment methods in Istishna?

• Payment in cash only

• Payment in installments

• Payment through barter

• Payment after delivery only

Which of the following is NOT a mechanism of payment in Istishna?

• Payment in advance

• Payment through credit

• Payment in installments

• Payment upon delivery

What is the primary purpose of Istishna financing?

• To provide loans for personal use

• To finance the production of goods

• To invest in stocks

• To fund educational programs

What is the role of the bank in Istishna financing?

• To act as a producer

• To act as a buyer

• To act as a seller and buyer

• To act as a mediator only

What is the maximum duration for Salam financing?

• One month

• Six months

• One year

• Two years

In Salam, what must be clear about the goods being sold?

• The seller's identity

• The price only

• The specifications and characteristics

• The delivery date only

What happens if the goods delivered in Salam do not meet the specifications?

• The buyer can return them

• The transaction is void

• The buyer must accept them anyway

• The seller can charge extra fees

What is the main risk for the bank in a Salam transaction?

• The price may decrease

• The goods may be damaged

• The price may increase

• The goods may not be delivered on time