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Chapter 2.2: Islamic Banks

Total questions: 10

Worksheet time: 50mins

Name
Class
Date
1.

Activities that involve interest (riba), gambling (maisir) and speculative trading (gharar) are prohibited in Islamic Banking

a)

True

b)

False

c)

Corporate Finance

d)

Sales & Trading

2.

A principle where if the entrepreneur gain a profit, it will be shared between the capital provider and the entrepreneur is called:

a)

Al-Ujr

b)

Al-Murabahah

c)

Al-Musyarakah

d)

Al-Mudharabah

3.

In Al-Rahn concept, if the borrower default, the bank have the right to sell off the collateralized asset to settle off the debt and if there is balance from selling off the asset, it should be return back to the borrower.

a)

True

b)

False

4.

The only difference between Conventional and Islamic Bank is that Islamic Bank follow the shariah rule.

a)

True

b)

False

5.

Unlike the conventional one, Islamic Banks in Malaysia is governed by the IFSA 2013.

a)

True

b)

False

6.

Following are true about Islamic Bank, EXCEPT

a)

Islamic Bank does not charge interest to their customer

b)

Islamic Bank apply the 'aqad' concept'

c)

Islamic Bank offer different banking business than the conventional one

d)

Islamic Bank charge fee on their services

7.

Following explain the concept of Al-Murabahah EXCEPT

a)

Bank and the customer will have a seller-buyer relationship

b)

The Bank will purchase the item desired by the customer and resell it back to the customer at the same price

c)

Both the bank and customer must agree on the profit that the bank will get from the financing

d)

The customer can pay back the bank either in lump sum or in installment

8.

Which of the following services that Islamic Bank will charge al-ujr on it

a)

Al-Wadiah Yad-Dhamanah

b)

Al-Musyarakah

c)

Al-Ijarah

d)

Al-Qardhul Hassan

9.

Both the conventional and Islamic Bank are Commercial Bank.

a)

True

b)

False

10.

Following are true about Al-Mudharabah and Al-Musyarakah EXCEPT

a)

Al-Mudharabah is not a partnership

b)

Both share their profit

c)

In Al-Musyarakah, loss will be borne by both of the parties

d)

Both principle share their loss between the parties