Mcqsmind

1

What is the primary objective of Islamic banking?

A. To operate in accordance with Shariah principles B. To maximize profit at any cost C. To lend money with interest D. To compete with conventional banks

2

What does the Arabic term 'Riba' mean?

A. Interest or usury B. Charity C. Partnership D. Trade

3

Which of the following is a key difference between Islamic and conventional banking?

A. Prohibition of interest in Islamic banking B. Use of physical currency C. Different accounting methods D. Government ownership

4

What does 'Mudarabah' mean in Islamic finance?

A. Profit-sharing partnership B. Sale contract C. Lease agreement D. Loan with interest

5

What is the main feature of a 'Musharakah' contract?

A. Joint partnership where all partners contribute capital B. Fixed rent agreement C. Interest-bearing loan D. Charitable donation

6

What is 'Murabahah' financing?

A. Cost-plus sale where the price and profit margin are disclosed B. Interest-free loan C. Leasing contract D. Waqf-based donation

7

In Islamic finance, what is 'Ijara'?

A. Leasing or rental agreement B. Charitable donation C. Profit-sharing scheme D. Speculative trade

8

Which of the following is NOT allowed in Islamic finance?

A. Speculative transactions (Gharar) B. Profit-sharing C. Asset-backed trade D. Leasing agreements

9

What does 'Takaful' represent in Islamic finance?

A. Cooperative Islamic insurance system B. Interest-free loan C. Government subsidy D. Charitable foundation

10

What is the literal meaning of 'Sukuk'?

A. Certificates B. Bonds C. Contracts D. Shares

11

What differentiates Sukuk from conventional bonds?

A. Sukuk are asset-backed, while bonds are debt-based B. Sukuk have higher interest rates C. Sukuk involve gambling D. Sukuk are only government issued

12

What is 'Gharar' in Islamic finance?

A. Excessive uncertainty or ambiguity in a contract B. Fair trade C. Partnership D. Profit-sharing

13

What does 'Halal investment' mean?

A. Investment permitted under Shariah law B. Government-sponsored projects C. All foreign investments D. Speculative stock trading

14

What does 'Qard Hasan' mean?

A. Benevolent loan without interest B. Loan with collateral C. Guaranteed profit scheme D. Joint partnership

15

Which principle forbids the trading of debt at a discount in Islamic finance?

A. Prohibition of Riba B. Prohibition of Zakat C. Principle of Qard Hasan D. Doctrine of Ijara

16

What is the purpose of a Shariah Supervisory Board in an Islamic bank?

A. To ensure compliance with Islamic law B. To set interest rates C. To recruit employees D. To manage marketing

17

Which Islamic contract is similar to leasing and ends with ownership transfer?

A. Ijara wa Iqtina B. Mudarabah C. Musharakah D. Murabahah

18

Which Quranic verse explicitly forbids Riba?

A. Surah Al-Baqarah 2:275 B. Surah Al-Mulk 67:1 C. Surah Al-Falaq 113:2 D. Surah Al-Kahf 18:9

19

In Mudarabah, who bears the financial loss?

A. The capital provider (Rabb al-Mal) B. The working partner (Mudarib) C. Both equally D. The government

20

Which Islamic term refers to partnership in ownership?

A. Musharakah B. Murabahah C. Ijara D. Takaful