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WorksheetsIslamic Finance 101-A
Total questions: 30
Worksheet time: 3600secs
Takaful is basically a Shariah-compliant
loan
insurance
investment
ownership
A type of partnership where one party offers funds while other gives expertise and management is
Murabaha
Musharaka
Ijarah
Mudaraba
The Islamic financial system prohibits transaction featuring
Extreme uncertainties resulting from speculation and gambling
Sharing of profit and risk of loss
Partnership agreements
Trading for profit
Are Islamic banking products for Muslims only?
For Muslims and those non-Muslims who are allowed by Shariah scholars
No
Yes
For muslims and those who convert to muslims
Identify Islamic Bank in Malaysia from the list given below
CIMB Bank
RHB Bank
Tabung Haji
Bank Islam Berhad
What is the first islamic financial institution in Malaysia?
tabung haji
bank islam
takaful ikhlas
bank rakyat
Gharar means uncertainty.
True
False
All financial instruments (e.g. stocks and mutual funds) need to get the approval from Shariah Advisory Council (SAC) of the Securities Commission Malaysia.
True
False
Which are two types of common Islamic capital market product?
Sukuk
Mutual Fund
Bitcoin
One of the primary objectives of Islam (Maqasid Al-Shariah) from the investment perspective is?
Protection of Religion
Protection of Intellect
Protection of Wealth/Property
Protection of Life
Which of the following are the types of assets or instruments that can be considered for investment?
I – Property
II – Gold
III – Stocks
I
I & II
I & III
I, II & III
Investment can be done in real sectors and financial sectors.
TRUE
FALSE
The following activities are prohibited in Islamic finance, except
Gambling
Taking insurance
Taking loan
Buying pork
Muslims can only invest in Shariah-compliant securities
True
False
What is uncertainty in Islamic finance?
Gharar
Maisir
Riba
Usury
The following statement(s) are correct, EXCEPT
Islamic finance can be found only in Muslim countries
Islamic finance exists in both Muslim and non-Muslim countries
Islamic finance can be found only in rich countries
Islamic finance exists in rich as well as in poorer countries
Gharar is divided into two, namely:
yasir & farid
yasid & fahish
yasir & fahish
What is major gharar?
it is so vague that there is means of quantifying it
an uncertainty which is so great that it becomes unacceptable
betting or charging something that will be forfeited if one fails to obtain the greater gain that one hopes for
What percentage of one's wealth has to be given in Zakat?
2.5%
3.5%
The Islamic financial system prohibits transaction featuring
Extreme uncertainties resulting from speculation and gambling
Sharing of profit and risk of loss
Partnership agreements
Trading for profit
The main difference between Sukuk and conventional bonds is:
Investors of Sukuk do not get coupon interest and instead get profit or rent depending on the underlying contract.
Sukuk is based on underlying Islamic nominate contracts that are available in Islamic commercial jurisprudence.
Sukuk always has an underlying asset, whether asset-backed or asset-based.
All of the available answers are correct differences of Sukuk and bonds.
Ahmad has RM10,000 capital and gives it to Karim for doing business. The profit will be given based on the ratio.
Musyarakah
Murabahah
Mudharabah
Bai al-Salam
Another name for benevolent loan is _____________.
ijarah thumma al bay’
qard hassan
mudarabah
musyarakah
SPV uses the money from sukuk issuance to be contributed in the partnership agreement with the originator.
Sukuk Ijarah
Sukuk Musyarakah
Sukuk Mudharabah
Sukuk Murabahah
Sukuk Istithmar
There is a similarity between Takaful and Conventional Insurance. Choose the correct one.
Transfer of risk
Based on mutual cooperation
Provide protection in the event of unforeseen events and
contributions must be made to start the coverage
Claims paid from participants’ fund
All these elements include in conventional insurance, EXCEPT
Al-Gharar
Hibah
Riba’
Al-Maysir
Which is not the principal of Islamic Investment?
Risk sharing
Prohibited of speculative activity
Investment into haram activity
Prohibition of Riba, Ghara & Maysir
Below are reasons to invest in Islamic investment, EXCEPT
Diversification
Financial screening
Lower cost
Protection from downside
Equity and sukuk are traded in Islamic capital market
True
False
Shariah Advisory Council (SAC) is responsible to review and endorse Shariah-compliant securities.
True
False
