10+ Islamic Finance Questions and Answers

Islamic Finance Questions

1. Please name the country that first issued sukuk.
A Indonesia B UAE
C Malaysia D Iran

2. What is sukuk?
A Is a bond B is an equity security
C PLS instrument D No correct answer

3. There are 2 types of musharakah
A Increasing and diminishing B Full and partial
C There is only 1 type of musharakah D Limited and unlimited

4. Which of the following countries has an ambition to become a hub for Islamic finance?
A Germany B France
C Denmark D UK

5. What is MENA?
A A regulatory authority in Iran B a geographical region
C a very costly and popular financial product of Islamic banks
D a benchmark that Islamic banks use in PLS contracts

6. Please, choose a wrong statement
A Islamic finance can be found only in Muslim countries
B Islamic finance exists in both Muslim and non-Muslim countries
C Islamic finance can be found only in rich countries
D Islamic finance exists in rich as well as in poorer countries

7. Which of the mentioned below is the most popular type of sukuk?
A Sukuk issued by an Islamic bank B Corporate sukuk
C Sovereign sukuk D All answers are correct

8. Will an Islamic bank cover all losses entirely if a project turns out to be unsuccessful if this is mudarabah agreement?
A The bank will cover losses together with all other partners
B No, the bank will not cover any losses
C No correct answer D Yes, in all cases

9. In Islam excessive uncertainty is prohibited. How is it called?
A Riba B Zakat
C Maysir D Gharar

10. Please name a contract based on which a commodity can be transacted before it comes into existence.
A Istisna B Futures
C Sukuk D Salam

11. Profit-and-loss sharing instruments include
A Musharakah B Mudarabah
C Ijarah D Salam

12. What is your favorite module at WIUT?
A Tort law B LPLS
C EU law D Banking Law

13. Non-PLS instruments include
A Murabahah B Ijarah
C Istisna’ D Musharakah

14. What is not a fee-based product?
A Ju’ala B All above are fee-based products
C Tawarruq D Kafalah

15. Musharakah is…
A An increase in wealth that is not related to engaging in a productive activity
B Generally used to finance consumer and corporate credit
C a benevolent loan, a form of financial assistance to the needy to be repaid free of charge
D Joint partnership where two or more partners provide capital to finance a project

16. Which of the below mentioned institions is responsible for issuing Islamic finance-related supervisory and regulatory standards and guidelines?
A Islamic Financial Services Board B Islamic Finance International Forum
C International Islamic Financial Market D Accounting and Auditing Organization

17. In Islamic banking, the term “loan” has a different meaning. What does it mean?
A It is a grant which is given to poor people B None is correct
C It is an amount given to poor people which must be repaid free of charge
D Profit-and-loss sharing instrument

18. MGISA is an institution based on Islamic finance which was established in the 1960s in
A Egypt B Saudi Arabia
C Pakistan D Malaysia

19. This financial product is mostly used in home financing. One party promises to buy the equity share of the other party gradually until the title of ownership of the equity is completely transferred to the buying party. What is it?
A Permanent mudarabah B Diminishing musharakah
C Permanent musharakah D Diminishing mudarabah

20. In Islamic economics, the profit obtained from __________ and from _______________ is considered to be legitimate.
A Productive human activity B Risk-sharing
C Intellectual gambling D Financial speculation

Answer Key

1. c 2. d 3. d 4. d
5. b 6. 7. c 8. c
9. d 10. 11. 12. d
13. 14. c 15. d 16. a
17. c 18. a 19. b 20.

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