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Quiz for Essential of Islamic Banking and Finance

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Which of the following is the highest authority in making the final decision on matters related to the Shariah?

a)

Shariah Review

b)

Shariah Risk

c)

Shariah Audit

d)

Shariah Committee

2.

Which of the following terms is NOT prohibited in Islamic Banking?

a)

Loan

b)

Insurance

c)

Will

d)

Financing

3.

Which of the following are pillars of Aqad?

i. Seller and Buyer

ii. Offer and Acceptance

iii. Availability of profitable asset

iv. Subject Matter or Underlying asset 

a)

i and iii only

b)

i, ii and iv

c)

i, ii and iii

d)

All of the above

4.

The Islamic Banking principles do not allow the following, EXCEPT;

a)

Interest (Riba')

b)

Uncertainties (Gharar)

c)

Gambling (Maysir)

d)

Profit Sharing

5.

Essential elements of a valid contract are the following, EXCEPT;

a)

Expression of offer (ijab) and acceptance (qabul)

b)

Contracting parties must be a Muslim

c)

Mutual consent of the contracting parties

d)

Existence of the subject matter

6.

Dato' Chong is the Chief Executive Officer of Magnum Berhad. He went to MIB Larkin Perdana and he wanted to open an Islamic savings account. Can MIB proceed with the opening account?

a)

Yes, every individual can open an Islamic deposit account, regardless of the company he works for.

b)

No, as a CEO of a company listed in the Negative List, he is not allowed to open the account.

7.

Under Shariah contract of Commodity Murabahah for Islamic Current Account and Savings Account (CASA), products benefits can be communicated, and rate of returns can be published via M2u and board rate.

a)

True

b)

False

8.

Where does the buy and sell of the commodity trading perform under Commodity Murabahah contract?

a)

Bursa Suq Al-Sila

b)

S & P 500 Stock Market

c)

Crude Palm Oil Distributor

d)

Resin Plastic Manufacturer

9.

Under Mudarabah contract, any profit generated from the investment will be shared between both, capital provider (customer) and entrepreneur (Bank) according to _________________ .

a)

Dividend

b)

Profit Sharing Ratio (PSR)

c)

The bank only

d)

KLIBOR

10.

Mr. Azmi has booked a terrace house in Sepang, and he was not sure whether to apply for home financing or a mortgage loan. As a banker, how do you convince Mr. Azmi to choose Islamic home financing?

i. Granting of rebate for early settlement

ii. No compounding of LPC and other charges

iii. Protection of ceiling rate upon the fluctuation of Standardised Base Rate (SBR)

iv. No early settlement fee / No lock-in period penalty

a)

i, ii

b)

ii, iii

c)

ii, iii, iv

d)

All of the above