WorksheetsIjarah & Its Application Quiz
Total questions: 10
Worksheet time: 5mins
The following are considered benefits of traditional leasing from the perspective of the lessee, except:
Probability of off balance sheet financing
Avoidance of obsolescence
Lower cost financing due to tax benefits
Lower maintenance fees of leased asset
Which of the following are considered to be the legal foundation of Ijarah in the sources of Shari'ah as it contains direct reference to Ijarah?
The Quran
The Sunnah
Consensus of scholars
All of the options provided are considered to be a legal foundation of Ijarah
Based on the Fiqh rules on Ijarah, which of the statements below is wrong?
It's the duty of the lessor to maintain the leased asset to retain its benefit that is used by the lessee
The lessee must act as a trustee of the lessor in treating the leased property properly
A leased asset may be subleased to a third party without permission from the lessor
A floating rate in ijarah is not permissible even when certain conditions are fulfilled
The following terms are considered as the Shari'ah compliant alternative of a conventional financial lease industry, except:
Ijarah al 'amal
Ijarah muntahia bittamleek
Ijarah wa Iqtina
Al Ijarah thumma al bai'
The unique party in an Islamic Real Estate Investment Trust compared to it's conventional counterpart is:
The REIT manager
The trustee
The unit holders
The Shari'ah Supervisory Board
Which of the following can't be purchased using an Ijarah based card such as the KFH Ijarah card?
Furniture
Food
Sport equipments
Electronic equipment
From the financial institution's perspective, how is credit risk mitigated in Ijarah?
Collateral or security
Charity penalty clause
Life takaful cover
All of the options provided are risk mitigation techniques for credit risk
The most common contract used as the foundation structure of a sukuk is:
Musharakah
Salam
Ijarah
Mudharabah
In AAOIFI's Islamic Accounting standard of FAS 8, the transfer of ownership to the lessee can be done in the following ways, except:
Transfer of title through gift
Transfer of title for token consideration
Transfer of title for a price exceeding the residual value, thus making a profit
Transfer of title through gradual sale of leased asset:
Which of the following is not an example of the application of Ijarah in the Islamic finance industry?
Sukuk Al Ijarah
Ijarah micro finance partnership
Islamic Real Estate Investment Trust (IREIT)
Ijarah for car financing
