WorksheetsIslamic Capital Market
Total questions: 15
Worksheet time: 8mins
What is Islamic finance?
Financial business that only benefits Muslims
Financial business that is not contradictory to the principles of Shariah
Financial business that is based on interest
Financial business that is contradictory to the principles of Shariah
What is the Capital Market?
A market where only individuals trade financial securities
A market where only institutions trade financial securities
A market where individuals and institutions trade financial securities
A market where only governments trade financial securities
What is the importance of capital markets in the Islamic financial system?
Prohibits trade and encourages interest
Prohibits interest and encourages trade
Encourages both interest and trade
Prohibits both interest and trade
What are examples of Syariah Approved Securities?
Tech Stocks, Real Estate Investment Trusts, and Mutual Funds
Islamic Share/Stoks/Equity, Sukuk, and Gold Investment
Foreign Currency Exchange, Options, and Penny Stocks
Oil Futures, Government Bonds, and Cryptocurrency
When was the Securities Commission Malaysia established?
1990
1993
2000
2005
What is the purpose of the Shariah Advisory Council (SAC) of the Securities Commission?
To determine Shariah compliant stocks and the Shariah Index
To promote non-Shariah compliant stocks
To regulate non-Islamic financial institutions
To encourage interest-based investments
What is the Business Activity Benchmark used for?
To evaluate the company's marketing strategies
To compute the percentage contribution of non-permissible activities to the company's total assets
To determine the company's profit margins
To assess the company's employee satisfaction
What is the Financial Ratio Benchmark used for?
To measure the company's social responsibility initiatives
To refine the selection of Shariah compliant stocks
To assess the company's customer service quality
To compare the company's revenue with industry standards
What is the threshold level allowed by the SAC for non-permissible activities in a company's core activity?
1% - 5%
40% - 60%
5% - 20%
20% - 40%
What should be the maximum percentage for the financial ratio benchmark to consider a stock Shariah compliant?
25%
50%
33%
10%
What happens if the price of a Shariah compliant security is more than its cost?
Must sell immediately and donate the proceeds to charity
Must inform the Securities Commission
Must hold onto the security
Must wait for the price to increase further
What is the additional criteria applied by the Securities Commission to companies involved in mixed business?
Assessing the company's environmental impact
Reviewing the company's advertising strategies
Analyzing the company's core activities and proportion of non-permissible elements
Evaluating the company's employee diversity
What is the objective of the SAC's two-tier quantitative approach?
To promote interest-based investments
To increase the number of non-Shariah compliant stocks
To translate subjective criteria into actionable filters
To discourage trade in the capital market
What is the role of the Securities Commission in determining Shariah compliant stocks?
To review the Shariah status of securities annually based on financial statements
To rely on external agencies for stock selection
To ignore the Shariah Advisory Council's recommendations
To randomly select stocks for Shariah compliance
What are the financial ratios used in the Financial Ratio Benchmark?
Cash over Total Assets, Debt over Total Assets
Income over Expenditure, Savings over Investments
Revenue over Expenses, Profit over Loss
Assets over Liabilities, Equity over Debt
