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Islamic finance_general

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Islamic finance is strongly _________oriented

a)

profit

b)

money

c)

equity

d)

interest

2.

A "sukuk" is basically a Shariah-compliant

a)

loan

b)

profit

c)

bank cheque

d)

investment certificate

3.

"Takaful" is basically a Shariah - compliant

a)

loan

b)

insurance

c)

investment

d)

ownership

4.

Which from the following is/are NOT permitted under Islamic Financial Principles


I. Interest

II. Short selling

III. Non-asset backed securities

a)

I only

b)

I and II

c)

I and III

d)

I, II, and III

5.

A type of partnership where one party offers funds while other gives expertise and management is

a)

Murabaha

b)

Musharaka

c)

Ijarah

d)

Mudaraba

6.

The Islamic financial system prohibits transaction featuring

a)

Extreme uncertainties resulting from speculation and gambling

b)

Sharing of profit and risk of loss

c)

Partnership agreements

d)

Trading for profit

7.

Are Islamic banking products for Muslims only

a)

For Muslims and those non-Muslims who are allowed by Shariah scholars

b)

No

c)

Yes

d)

For muslims and those who convert to muslims

8.

Wakalah is used by Islamic banks mostly for

a)

Consumer loans

b)

Sales through documents

c)

Fund management through agency based documents

d)

Guaranteeing payments

9.

Which of the following is a type of investing instrument?

a)

Musharakah

b)

Musavvama

c)

Kafalah

d)

Qimar

10.

Banking may broadly be described as the business of providing

a)

Investment services

b)

Financial services

c)

Loans and mortgages

d)

Foreign exchange services

11.

Shariah provides a network of ethical and moral rules of behavior for

a)

Potential buyers

b)

Travelling merchants

c)

All participants in market

d)

Muslims only

12.

Under Salam contract goods are

a)

Not delivered until payment is made

b)

Taxed before delivery

c)

Purchased for delivery in future

d)

Delivered for payment later

13.

The term Kafala in Islamic commercial law refers to

a)

Finance

b)

Guarantee

c)

Purchase

d)

Sharing losses

14.

Find the asset-based financial instruments:

a)

Salam, Murabaha, Istisna', Ijarah

b)

Musharakah and Murabaha

c)

Salam, Murabaha, Mudaraba, Istisna'

d)

Salam, Mudaraba, Istisna'

15.

________ is a contract whereby the purchaser pays the price in advance and the delivery of subject matter is postponed to a specified time in future.

a)

Istisna'

b)

Salam

c)

Ijarah

d)

Qard ul-hassan

16.

Tabarru is...

a)

An arrangement based on mutual assistance

b)

Contract of charity or donation

c)

A common fund contributed by a takaful participants

d)

Insurance contract

17.

Find types of Takaful.

a)

Musharaka, Wakala, Hybrid, Waqf

b)

Mudaraba, Wakala, Hybrid, Waqf

c)

Mudaraba, Kafala, Hybrid, Waqf

d)

Murabaha, Wakala, Hybrid, Waqf

18.

Murabaha is...

a)

Partnership agreements

b)

Trade-based Agreements

c)

Commission payment agreements

d)

Loan agreement

19.

In the ____________ model of Takaful financial losses are required to be covered only by the participants

a)

Wakala

b)

Mudaraba

c)

Murabaha

d)

Waqf

20.

A customer only uses the asset during a temporary time.

It happens in a ...

a)

Loan

b)

Sale

c)

Lease

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