Free Printable Islamic Finance Revision

1.

Below are the purposes of the Shariah Advisory Council of Bank Negara Malaysia (SAC), EXCEPT:

a)

issue a ruling on all Islamic financial business in Malaysia

b)

to determine the relevant Islamic law on any financial matter for financial institutions in Malaysia

c)

to advise Bank Negara Malaysia on trade law with neighbouring country

d)

to advise the Islamic Bank on any Shariah issues relating to Islamic financial business operations, activities, or transactions

2.

Below are the correct statements on the sources of Shariah Law, EXCEPT:

a)

Qiyas - the process of comparing common questions of principle with similar cases settled by the public opinion

b)

Ijma - contains the opinions of Islam’s learned scholars on matters of law.

c)

The Hadith - narrative of the Sunnah of the Prophet which constitutes the rules of faith of the Muslim community.

d)

The Quran - The Holy Book which conveys Allah’s messages relayed by the Prophet.

3.

Below are examples of activities prohibited by the Islamic banking and finance, EXCEPT:

a)

An excessive transaction with uncertain payoff

b)

Attaining value profit through no effort and may encourage addictive behaviour such as gambling

c)

Sales information irregularity affording a disadvantage to one of the parties involved.

d)

Sales involving halal products and services only

4.

Choose the prohibited elements in Islamic Finance:

I. Riba

II. Qimar

III. Khilabah

IV. Fiqh

a)

I, II, and III

b)

II, III and IV

c)

I, II and IV

d)

I, II, III and IV

5.

Below are the general requirements of for Ijab and Qabul in an Islamic finance contract, EXCEPT:

a)

It should be in clear language and unconditional.

b)

There should be conformity between offer and acceptance.

c)

It must be in writing only

d)

Both offer and acceptance must be concluded in the same session

6.

Choose the basic form of an Islamic financial contract:

I. offer and acceptance

II. must have a legal purpose

III. must be a mutual agreement between the parties

IV. both parties agree to provide something of value in exchange for a benefit

a)

I, II and III

b)

II, III and IV

c)

I, III and IV

d)

I, II, III and IV

7.

Choose the correct statement that best explain void sale (Batil):

a)

the major conditions relating to elements of contract are not fulfilled

b)

the contracting party is sane

c)

void contract can still be enforced by either party

d)

the buyer have title to the subject matter and the seller doesn’t have title to price.

8.

Shariah contract can be classified into:

I. by the type of goods exchanged

II. by the method of payment

III. by the type of contracting parties

IV. by the geographical location of goods

a)

I and II

b)

II, III and IV

c)

I, II, III and IV

d)

I, II and IV

9.

Choose the best statement that describes Bay al-Muqayadah:

a)

one monetary form is exchanged for another in the same or different category.

b)

one commodity is exchanged for another commodity

c)

the price of goods can be determined fairly and easily in this mode of sale

d)

payment is made in full at the time of the sale

10.

Below are functions of Islamic Money Market, EXCEPT:

a)

Investment opportunities

b)

Means for working capital requirements

c)

Provides a means of raising funds by converting securities and financial assets in the form of cash

d)

Firms or financial institutions unable to store surplus funds until they are needed

11.

Below are characteristics of Islamic Equity, EXCEPT:

a)

The business must be halal

b)

Profits should be shared on a pro-rata basis

c)

The equity products must be structured according to Shariah

d)

The shares of a company are negotiable even if the company did not owned illiquid assets

12.

Below are Sukuk Structures, EXCEPT:

a)

Sukuk Mudarabah

b)

Sukuk Ijarah

c)

Sukuk Musharakah

d)

Sukuk takaful

13.

______ is a special kind of partnership where one partner provides the capital (rabb- ul-maal) to the other (mudarib) for investment in a commercial enterprise. This sentence best describe:

a)

Sukuk Mudarabah

b)

Sukuk Salam

c)

Sukuk Musharakah

d)

Sukuk Ijarah

14.

Which of the following describe the difference between Takaful and conventional insurance?

a)

conventional insurance is a buy and sale contract while takaful focus more on donation

b)

In takaful, any surplus belongs to the company and distributed among stockholders

c)

in takaful, the risk is transfered between policyholder and the company

d)

In takaful the investment of premiums is unrestricted

15.

Below are characteristics of Islamic Equity, EXCEPT

a)

the business must be Halal

b)

profits will be shared on pro-rata basis

c)

suitable for Shariah-compliant preferred investors

d)

Only for muslim investors

Islamic Finance Revision

Total questions: 15

Worksheet time: 8mins

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