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FPSC (Federal Public Service Commission) · ASF
Islamic Development Bank (IsDB)
International Organizations · General Knowledge
25 MCQs
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Islamic Development Bank (IsDB)
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1
What does IsDB stand for?
A. Islamic Development Bureau
B. Institute for Development in Banking
C. Islamic Development Bank
D. International Social Development Bank
Answer & Solution
Answer:
Islamic Development Bank
The IsDB is a multilateral development bank serving member countries of the OIC.
2
In which year was the Islamic Development Bank established?
A. 1969
B. 1973
C. 1975
D. 1980
Answer & Solution
Answer:
1975
The IsDB officially began operations in 1975.
3
Where is the headquarters of the IsDB located?
A. Cairo, Egypt
B. Istanbul, Türkiye
C. Dubai, UAE
D. Jeddah, Saudi Arabia
Answer & Solution
Answer:
Jeddah, Saudi Arabia
The Islamic Development Bank is headquartered in Jeddah.
4
Which organization’s members primarily make up the IsDB?
A. OPEC
B. ASEAN
C. OIC
D. Arab League
Answer & Solution
Answer:
OIC
IsDB membership is linked to membership in the Organisation of Islamic Cooperation.
5
How many member countries does the IsDB currently have?
A. 47
B. 52
C. 57
D. 60
Answer & Solution
Answer:
57
The IsDB has 57 member states, the same as the OIC.
6
Which of the following is a primary funding principle of the Islamic Development Bank?
A. Interest-based lending
B. Sharia-compliant financing
C. Credit-based securities
D. Commercial banking model
Answer & Solution
Answer:
Sharia-compliant financing
IsDB operates entirely on Islamic finance principles, including non-interest-based transactions.
7
Which of the following is a sector commonly supported by IsDB projects?
A. Space exploration
B. Nuclear weapons development
C. Infrastructure and education
D. Entertainment industries
Answer & Solution
Answer:
Infrastructure and education
IsDB finances development projects such as roads, schools, and health services.
8
Which IsDB financial instrument is based on profit-sharing?
A. Murabaha
B. Mudarabah
C. Ijara
D. Istisna’a
Answer & Solution
Answer:
Mudarabah
Mudarabah is a Sharia-compliant partnership based on profit-sharing.
9
Which IsDB instrument is a leasing-based financing method?
A. Ijara
B. Sukuk
C. Musharakah
D. Salam
Answer & Solution
Answer:
Ijara
Ijara is the Islamic equivalent of leasing.
10
Which entity governs the policies and decisions of the IsDB?
A. Board of Governors
B. Islamic Finance Tribunal
C. Sharia Supervisory Board
D. Regional Steering Committee
Answer & Solution
Answer:
Board of Governors
The Board of Governors, composed of representatives from member states, is the highest authority.
11
What is the main currency used for IsDB operations?
A. US Dollar
B. Euro
C. Islamic Dinar
D. Saudi Riyal
Answer & Solution
Answer:
Islamic Dinar
The Islamic Dinar, based on the SDR, is the IsDB’s unit of account.
12
Which of the following is a major initiative of the IsDB?
A. Vision 2030 Global Growth Plan
B. Science, Technology and Innovation (STI) Fund
C. Blue Pacific Continent Strategy
D. Global Maritime Compact
Answer & Solution
Answer:
Science, Technology and Innovation (STI) Fund
The STI Fund supports scientific advancement in member states.
13
Which form of Islamic bond is issued by the IsDB?
A. Treasury Bills
B. Sukuk
C. Eurobonds
D. Derivative Notes
Answer & Solution
Answer:
Sukuk
The IsDB frequently issues Sukuk to raise funds for development projects.
14
Which region receives the highest share of IsDB financing?
A. Europe
B. Sub-Saharan Africa
C. South America
D. North America
Answer & Solution
Answer:
Sub-Saharan Africa
Many IsDB projects are concentrated in African member states.
15
Which IsDB arm supports private-sector development?
A. ICIEC
B. ITFC
C. ICD
D. ISFD
Answer & Solution
Answer:
ICD
The Islamic Corporation for the Development of the Private Sector (ICD) supports private-sector growth.
16
Which IsDB entity provides trade finance to member countries?
A. ICIEC
B. ITFC
C. ICD
D. ISFD
Answer & Solution
Answer:
ITFC
The International Islamic Trade Finance Corporation supports trade within and among member states.
17
Which IsDB institution provides insurance against political and commercial risks?
A. ICIEC
B. ITFC
C. IsDB Group Academy
D. IDB Research Center
Answer & Solution
Answer:
ICIEC
The Islamic Corporation for Insurance of Investment and Export Credit provides such coverage.
18
What is a major challenge faced by IsDB member states?
A. Low levels of natural resources
B. High climate vulnerability and poverty rates
C. Lack of export markets
D. Excessive industrialization
Answer & Solution
Answer:
High climate vulnerability and poverty rates
Many IsDB members face development constraints linked to climate and poverty.
19
Which theme is central to IsDB’s 10-Year Strategy?
A. Space exploration
B. Sustainable development
C. Military modernization
D. Global currency harmonization
Answer & Solution
Answer:
Sustainable development
Sustainability and inclusive development are key pillars of the IsDB’s long-term strategy.
20
Which global development agenda does the IsDB align its projects with?
A. Paris Club Framework
B. SDGs (Sustainable Development Goals)
C. NATO Development Charter
D. G20 Industrial Blueprint
Answer & Solution
Answer:
SDGs (Sustainable Development Goals)
IsDB actively supports implementation of the UN SDGs.
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