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Islamic Banking_FIN546

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What is the primary difference between conventional banking and Islamic banking?

a)

Islamic banking does not offer loans, unlike conventional banking

b)

Conventional banking is more transparent than Islamic banking

c)

Conventional banking operates based on interest, while Islamic banking follows Sharia law principles.

d)

Islamic banking is not regulated, unlike conventional banking

2.

In Islamic banking, what is the concept of 'Riba'?

a)

Acceptance of interest

b)

Interest-bearing accounts

c)

Interest-free loans

d)

Prohibition of interest

3.

What is the Islamic banking principle that prohibits uncertainty and speculation?

a)

Riba

b)

Takaful

c)

Gharar

d)

Mudarabah

4.

What is the term used for Islamic banking transactions that involve profit sharing?

a)

Takaful

b)

Ijarah

c)

Sukuk

d)

Mudarabah

5.

Which Islamic banking principle emphasizes the importance of ethical and moral values in financial transactions?

a)

Halal banking

b)

Shariah compliance

c)

Islamic law

d)

Quranic finance

6.

What is the Islamic banking term for charitable donations made for the welfare of the community?

a)

Hajj

b)

Sadqa

c)

Salat

d)

Zakat

7.

What is the Islamic banking term for the practice of pooling resources to support a common goal?

a)

Takaful

b)

Sukuk

c)

Ijarah

d)

Mudarabah

8.

In Islamic banking, what is the term for the process of ensuring that financial transactions comply with Islamic law?

a)

Muslim validation

b)

Islamic audit

c)

Halal verification

d)

Shariah compliance

9.

What is the Islamic banking term for the practice of setting aside a portion of income for charitable purposes?

a)

Ramadan

b)

Zakat

c)

Hajj

d)

Sadaqah

10.

Which Islamic banking principle promotes risk-sharing and discourages excessive risk-taking?

a)

Riba

b)

Mudarabah

c)

Ijarah

d)

Zakat