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Quiz Bank Risk

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Islam rejects the practice of risk management because it contradicts with Islamic teaching

a)

True

b)

False

2.

Risk transfer is one of the risk mitigation technique in managing risk

a)

True

b)

False

3.

Currency risk in one example of credit risk

a)

True

b)

False

4.

In Islam, all parties involved in the financial contracts have to undertake potential risk for the entitlement of profit.

a)

True

b)

False

5.

Credit risk is a risk that arises from counterparty failure to meet their obligations in accordance with agreed terms.

a)

True

b)

False

6.

Risk that arises from a bank’s inability to meet its obligations because of difficulties in obtaining cash at reasonable cost from financing or sale of assets is known as liquidity risk

a)

True

b)

False

7.

Operational risk is a risk of loss resulting from systems, people and process defaults

a)

True

b)

False

8.

Risk identification is one of the process in risk management in Islamic bank

a)

True

b)

False

9.

The higher the uncertainty the lower will be the risk

a)

True

b)

False

10.

In general, risk has inverse relationship with return

a)

True

b)

False