MCQs on Inah and Tawarruq

Which school of thought allows Bay' al-'Inah based on the principle of form over intention?

• Hanafi

• Maliki

• Shafi'i

• Hanbali

According to Hanafi jurists, Bay' al-'Inah involves:

• Selling at a loss on credit

• Selling at profit on deferred payment and buying back at lower price

• Selling to a third party

• Donation of assets

Which element is central to the permissibility debate surrounding Tawarruq and Inah?

• Type of asset used

• Place of transaction

• Intention behind the transaction

• Time of sale

Bay' al-'Inah is criticized because it:

• Promotes charity

• Supports conventional banking

• Resembles a usurious loan

• Is unclear in contract terms

In Tawarruq, the asset is eventually sold to:

• The original seller

• The same buyer

• A third party

• Government institutions

Which institution allows Bay' al-'Inah in Malaysia based on maslahah (public interest)?

• AAOIFI

• JAKIM

• Bank Negara Malaysia

• Malaysian Shariah Scholars

Regulated Tawarruq is also known as:

• Bay' al-Muajjal

• Tawarruq Munazzam

• Murabahah Tawarruq

• Bay' Salam

Which commodity is NOT typically used in Regulated Tawarruq?

• Sugar

• Gold

• Flour

• Crude oil

The key difference between Inah and Tawarruq is:

• Type of asset used

• Method of payment

• Party involved in resale

• Duration of contract

Which principle is used to oppose contracts like Inah and Tawarruq due to their outcomes?

• Istihsan

• Maslahah

• Sad al-zarai' (blocking means to harm)

• Qiyas