1. Followings are the concepts of Islamic Investment except;
A Shariah approved activities.
B Risk sharing or loss sharing or profit sharing.
C Prohibition of Riba’, Gharar, Maysir. D Permissibility of hoarding.
2. The actions, words, behavior, or tacit approval of the Prophet Muhammad SAW is considered to be the
A Quran B Sunnah
C Ijma’ D Qiyas
3. A _____ in which the investors contribute their money for the purpose of its investment to earn permissible (halal)
profits in strict conformity with the Islamic law.
A joint pole B joint pool
C joined poll D join pool
4. Securities markets are forums that allow suppliers and demanders of securities to make financial transactions.
A False B True
5. What is the difference between an Investment Bank and an Islamic Investment Bank?
A The products and services offered in an Islamic Investment Bank is Shari’ah compliant as per its Shari’ah Board
B All of the above are correct differences between the two
C Islamic Investment Banks only deal with Islamic projects and transactions, including customers that are Islamic
D Investment Banks does not have anything to do with any Shari’ah compliant services and transactions
6. At the institutional level, the Islamic Financial Services Act (IFSA) 2013 requires all Islamic financial institutions through their _____________ to ensure that their business objectives and operations are Shariah compliant at all times.
A Shariah Advisory Council B Shariah Supervisory Board
C Shariah Supervisory Bill D Shariah Advocate Council
7. What is the permissible % benchmark that was determined by the Shariah Advisory Council (SAC) of the Securities Commission for the criteria on rental from non-permissible activities?
A 15% B 10%
C 5% D 20%
8. What is the stock exchange of Malaysia
A Kuala Lumpur Stock Exchange B NYSE
C Nasdaq D Bursa malaysia
9. Shariah screening methodology was formulated by the __________ of Malaysia to assist investors in identifying Shariah-compliant securities.
A Shariah Advisory Council (SAC) of Bank Negara Malaysia (BNM)
B Shariah Supervisory Board (SSB) of Bank Negara Malaysia (BNM)
C Shariah Supervisory Board (SSB) of Securities Commission (SC)
D Shariah Advisory Council (SAC) of Securities Commission (SC)
10. ________ can be derived as speculation in investment which is prohibited in Islamic transaction.
A Gharar B Riba’
C Maysir D Hoarding
1. d 2. b 3. b 4. b
5. a 6. b 7. d 8. d
9. d 10. c
1. Which of the following assets is traded only in an over-the-counter market?
A stocks B treasury bonds
C debt instruments D commodities
2. Which of the following statements about the characteristics of debt and equity are true?
A They can both be long-term financial instruments.
B All of the above.
C They both enable a corporation to raise funds.
D They both involve a claim on the issuer’s income.
3. Which of the following are primary markets?
A The options markets B None of the above
C The over-the-counter stock market D The New York Stock Exchange
4. The process of indirect finance using financial intermediaries is called
A direct lending. B resource allocation.
C financial liquidation. D financial intermediation.
5. Who are the main issuers in the Malaysian bond market?
A central bank B unit trust
C cagamas berhad D maybank
6. Who are the major investors in the Malaysian bond market?
A unit trust B pension fund
C discount houses D EPF
7. Which of the following statements about the characteristics of debt and equities is true?
A Bond holders are residual claimants.
B The income from bonds is typically more variable than that from equities.
C Bonds pay dividends.
D They can both be long-term financial instruments.
8. Which of the following are investment intermediaries?
A Life insurance companies B Mutual funds
C State and local government retirement funds
D Pension funds
9. Which of the following can be described as involving direct finance?
A A corporation buys a short-term security issued by another corporation.
B A corporation takes out a loan from a bank.
C An insurance company buys shares of common stock in the over-the-counter markets.
D People buy shares in a mutual fund.
10. Which of the following instruments are traded in a money market?
A Banker’s acceptances B Bank commercial loans
C Residential mortgages. D State and local government bonds
11. An important function of secondary markets is to
A make it easier to sell financial instruments to raise cash.
B create a market for bank demand deposits.
C raise funds for corporations through the sale of securities.
D make it easier for governments to raise taxes.
12. Which of the following can be described as involving direct finance?
A An insurance company buys shares of common stock in the over-the-counter markets.
B A corporation issues new shares of stock.
C A pension fund manager buys a shortterm corporate security in the secondary market.
D People buy shares in a mutual fund.
13. Securities are _____ for the person who buys them, but are _____ for the individual or firm that issues them.
A non-negotiable; negotiable B assets; liabilities
C liabilities; assets D negotiable; non-negotiable
14. Which of the following is a contractual savings institution?
A A credit union B A life insurance company
C A mutual fund D A savings and loan association
15. Which of the following can be described as direct finance?
A You buy shares in a mutual fund. B You borrow $2500 from a friend.
C You take out a mortgage from your local bank.
D A pension fund lends money to General Motors.
16. Which of the following financial intermediaries is not a depository institution?
A A commercial bank B A credit union
C A finance company D A savings and loan association
17. An important financial institution that assists in the initial sale of securities in the primary market is the
A stock exchange. B investment bank.
C brokerage house. D commercial bank.
18. Which of the following can be described as involving indirect finance?
A A pension fund manager buys a shortterm security from the issuing corporation.
B Both (a) and (b) of the above.
C A corporation buys a short-term security issued by another corporation.
D A corporation’s stock is traded in an overthe- counter market.
19. Every financial market has the following characteristic:
A It determines the level of interest rates. B It allows common stock to be traded.
C It channels funds from lenders-savers to borrowers-spenders.
D It allows loans to be made.
1. b 2. b 3. b 4. d
5. a 6. d 7. d 8. b
9. a 10. a 11. a 12. b
13. b 14. b 15. b 16. c
17. b 18. d 19. c