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Bai’ al-Istijrar Quiz

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

What is Bai’ al-Istijrar?

a)

Sale contract involving deferred payment

b)

A contract of repeated purchase without initial pricing agreement

c)

Loan-based Islamic contract

d)

Partnership contract

2.

Which of the following is a key feature of Bai’ al-Istijrar?

a)

Immediate lump sum payment

b)

Repeated supply of goods without prior pricing agreement

c)

Profit-sharing ratio

d)

No delivery of goods

3.

Which condition is required for the validity of Bai’ al-Istijrar?

a)

Goods must be intangible

b)

There must be clear agreement on the price at the time of each transaction

c)

The contract must be based on ijarah

d)

The goods must be delivered after full payment

4.

According to some jurists, Bai’ al-Istijrar is valid when...

a)

Payment is made after one year

b)

There is mutual understanding and customary practice

c)

The price is fixed retroactively

d)

Goods are not delivered physically

5.

Which school of thought allows Bai’ al-Istijrar based on urf (custom)?

a)

Maliki

b)

Shafi’i

c)

Hanbali

d)

Hanafi

6.

Bai’ al-Mu’atah refers to:

a)

Credit-based sale

b)

Sale through offer and acceptance without spoken words

c)

Loan given in kind

d)

Sale with delayed delivery

7.

Which best describes the application of Bai’ al-Istijrar in modern Islamic banking?

a)

Profit-sharing investment

b)

Repeated supply arrangements like utilities or fuel supply

c)

Foreign currency trading

d)

Short-term equity financing

8.

What is Bai’ al-Dayn?

a)

Sale of gold for silver

b)

Sale of existing debt

c)

Loan repayment contract

d)

Partnership-based sale

9.

In Islamic law, a debt (dayn) is considered:

a)

Tangible and immediately transferable

b)

A physical asset

c)

A liability that can be sold under strict conditions

d)

Equivalent to cash in all aspects

10.

Which of the following is a type of Bai’ al-Dayn?

a)

Forward sale

b)

Profit-sharing contract

c)

Lease agreement

d)

Partnership contract

11.

What is a Shariah issue in contemporary Bai’ al-Dayn?

a)

Prohibition of gold trading

b)

Use of conventional interest rates

c)

Sale of debt at a discount

d)

Issuance of zakat certificates

12.

Which Islamic contract is commonly confused with Bai’ al-Dayn due to similar structure?

a)

Qard

b)

Ijarah

c)

Salam

d)

Murabahah

13.

What differentiates al-Dayn from al-Qard?

a)

Al-Qard is always a sale contract

b)

Al-Dayn must be given without return

c)

Al-Qard is a loan, while al-Dayn refers to debt arising from a sale

d)

Both are identical in Islamic jurisprudence

14.

What is the main concern with selling debt (Bai’ al-Dayn) in the secondary market?

a)

Currency fluctuation

b)

Trading at face value

c)

Risk of riba through discounted pricing

d)

Lack of buyer interest

15.

Which of the following is NOT a Shariah-compliant contract?

a)

Bai’ al-Dayn

b)

Sale of a debt to a third party

c)

Istisna’ financing

d)

Ijarah contract

16.

Why is Bai’ al-Dayn controversial in Islamic finance?

a)

It is not mentioned in classical texts

b)

It involves gharar

c)

It may lead to riba if not structured properly

d)

It includes joint venture risks