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Financial Instrument Quiz

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is a financial instrument?

a)

A document representing a legal agreement involving monetary value

b)

A type of musical instrument

c)

A cooking utensil

d)

A gardening tool

2.

According to AAOIFI, what are investment funds?

a)

Tools used for painting

b)

Types of musical instruments

c)

Physical assets like buildings and machinery

d)

Financial vehicles independent of the institutions that establish them

3.

What is the primary characteristic of Equity Market Instruments?

a)

Investing in the stock/share market

b)

Investing in real estate only

c)

Investing in precious metals

d)

Investing in cryptocurrencies

4.

What is the main function of a Unit Trust/Mutual Fund?

a)

A type of government bond

b)

A legal document for property ownership

c)

A type of insurance policy

d)

Pooled investment plan managed by professional fund managers

5.

What is the characteristic of Real Estate Investment Trusts (REITs)?

a)

Investing at least 50% of total assets in real estate

b)

Investing in agriculture

c)

Investing in the stock market

d)

Investing in technology companies

6.

What is the definition of Islamic REITs (I-REITs)?

a)

A type of mutual fund

b)

A type of government bond

c)

A type of cryptocurrency

d)

A collective investment scheme in real estate with Shariah-compliant tenants

7.

What is the main difference between Islamic ETFs and conventional ETFs?

a)

The benchmark index that the ETF tracks

b)

The number of employees in the ETF company

c)

The color of the ETF logo

d)

The size of the ETF office

8.

What is the feature of an ETF?

a)

A type of art exhibition

b)

A type of cooking show

c)

A type of musical performance

d)

Listed index-tracking fund that can be bought and sold anytime during stock exchange trading hours

9.

What is the role of the trustee in a Unit Trust?

a)

To provide medical services to the unit holders

b)

To handle the fund's legal matters

c)

To manage the fund's marketing activities

d)

To look after the interest of the unit holders and ensure compliance with Shariah

10.

What does the Securities Commission do in relation to unit trusts?

a)

Safeguard the interests of investors and formulate regulations for unit trusts

b)

Provide loans to unit trusts

c)

Manage the day-to-day operations of unit trusts

d)

Sell unit trusts to investors

11.

What is the primary objective of Exchange Traded Funds (ETFs)?

a)

To achieve the same return as a particular market index

b)

To provide loans to investors

c)

To offer insurance services

d)

To sell real estate properties

12.

What is the main income source for Islamic REITs?

a)

Derived from agriculture investments

b)

Derived from technology companies

c)

Derived from stock market investments

d)

Derived from tenants operating permissible activities according to Shariah

13.

What is the main type of tenants for Islamic REITs?

a)

Tenants in government offices

b)

Tenants in non-permissible activities

c)

Tenants in industrial factories

d)

Tenants in businesses that comply with Shariah principles

14.

What is the Malaysian SC's guideline regarding rental from mixed activities for Islamic REITs?

a)

Proportion of rentals from non-permissible activities must not exceed 20%

b)

Proportion of rentals from non-permissible activities must exceed 50%

c)

Proportion of rentals from non-permissible activities must be 100%

d)

Proportion of rentals from non-permissible activities must be ignored

15.

What is the requirement for the acquisition of real estate for Islamic REITs?

a)

Real estate must be non-compliant with Shariah principles

b)

Real estate must be used for any purpose

c)

Real estate must be Shariah compliant in terms of utilization and financing

d)

Real estate must be located in specific countries