14_Islamic Banking Products

What is the primary function of a bank according to the text?

• To invest in stocks

• To generate profit

• To offer services to customers

• To provide loans

Which of the following is NOT one of the products of Islamic banking mentioned in the text?

• Mortgage

• Rahn

• Hawalah

• Qard

What does Al-Hawalah refer to?

• Transfer of ownership

• Transfer of debt obligation

• Loan agreement

• Investment contract

Which parties are involved in the Al-Hawalah transaction?

• Investor, Client, Bank

• Lender, Borrower, Guarantor

• Muhal, Muhil, Muhal Alaih

• Debtor, Creditor, Bank

What is a requirement for the parties involved in Al-Hawalah?

• They must be related

• They must have a business license

• They must be of legal age and sound mind

• They must be from the same country

What is the purpose of the Al-Qard facility?

• To fund government projects

• To assist small entrepreneurs

• To invest in large corporations

• To provide interest-based loans

Which of the following is a source of funds for Al-Qard?

• Interest from loans

• Government grants

• Zakat, infaq, and sedekah

• Deposits from wealthy clients

What is the main characteristic of the Al-Qard loan?

• It requires collateral

• It is interest-free

• It has a fixed repayment schedule

• It is only for large businesses

What does Ar-Rahn represent in Islamic banking?

• A type of investment

• A loan agreement

• A collateral agreement

• A savings account

Which of the following is a requirement for the collateral in Ar-Rahn?

• It must be a luxury item

• It must be a cash equivalent

• It must be owned by the borrower

• It must be insured