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WorksheetsWadiah- Islamic Finance
Total questions: 10
Worksheet time: 6mins
1. How many pillars are there in Wadiah ? What does the pillar “Al-Wadiah” refer to ?
5. The institutions keep the deposited fund safe and secure.
4. Both parties make offers and accept the contract.
4. The institutions keep the deposited fund safe and secure.
3. Owner gives their assets to the custodian complied to the contract.
2. Depositors deposit their money in banks. Banks take care of depositors’ money.
True
False
3. The deposited funds collected cannot be used by banks for their own purposes. Eg investing in their portfolios.
True
False
4. Upon owners depositing their funds, they do not earn any profit from interest. Meanwhile, banks will have to return depositors’ money upon their demand.
True
False
5. Wadiah versus conventional banks. Islamic is structured as profit-oriented and do not share their risk with clients.
True
False
6. Wadiah versus Musharakah. In the practice of both concepts, why is it said that Wadiah depositors only have control and make decisions on the funds as opposed to Musharakah, where all parties have control and decision-making power ?
Wadiah is a partnership-based contract. Both parties contribute funds to the venture and have authority over the usage of funds.
Wadiah focuses on the profit and loss of the deposited funded, and hope to earn interest.
Wadiah is a contact of leasing or rental payment.
None of the above.
7. Why are there people bias towards Islamic Banking ? Specifically, towards the practice of Wadiah.
They do not profit from their investment/deposits.
Lack of information provided for Wadiah’s product and services.
No one except the management team really knows how the funds were managed.
All the above.
8. Which of the following are not examples of Islamic Banks in Malaysia ?
Maybank Islamic Berhad.
Public Islamic Bank Berhad.
HSBC Amanah Malaysia Berhad.
Alliance Bank Malaysia Berhad.
9. Which of the following statements are true regarding Wadiah versus Ijarah ?
Ijarah is the act of entrusting assets as safekeeping whereas Wadiah is the act of leasing in exchange of rental payments.
Wadi’ah does not have assets ownership whereas Ijarah has assets ownership upon an agreed period.
Upon depositing, Wadiah (depositors) will receive monthly payment plus residue value of the asset.
None of the above.
10. In the concept of Wadiah versus Mudarabah, in what circumstances Wadi’ah (safekeepers) will bear the risk of loss ?
Wadiah concept is a one-party risk taker. Risk sharing does not exist.
The contract between Wadiah and Wadi’ah involves fraud and opaque elements.
Institutions returned the funds upon request of depositors.
None of the above.
