The following mode(s) of transactions were prevailing during the Prophet’s lifetime:

a) shirkah (partnership) based on profit-and-loss sharing (PLS).

b) al qard al hasan (benevolent loan).
c) salam (forward) contract.
d) all of the above. √

2 The four rightly-guided Caliphs are:

Abu Bakr, Umar, ‘Uthman, and Salman.
Abu Bakr, Umar, Uthman and Ali. √
Abu Bakr, Umar, Ali, and Abdel Malik.
None of the above.

3. Which of the following is not a function of the Islamic Development Bank (IDB)?

to accept deposits and mobilizing financial resources through Sharī’ah

compatible modes.
to Assist in the promotion of foreign trade especially in capital goods, among
member countries.
c) to regulate the Islamic banking and financial industry √
d) to establish and operate special funds for specific purposes

4. Dubai Islamic Bank (DIB) operates the following main business group(s):

retail banking.
corporate banking.
real estate.
all of the above. √

5. Islamic finance, as an ethical, interest-free regime built on profit-and –loss sharing (PLS), is
meant:
a) only for Muslims.
 b) for Muslims and non-Muslims only in commercial transactions.
c) for Muslims and non-Muslims only in personal finance.
d) as an alternative to conventional finance √

6. Objective of human life is to please Almighty Allah via –

only Ibadaat (Acts of Worship).
only Mu’amalaat (Interactions with People).
both Ibadaat and Mu`amallat. √
none of the above.

7. Two main sources of Shari’ah are –

Sunnah (Hadith) and Ijma` (Consensus).

Sunnah (Hadith) and Ijtihad (Juristic decision).
Quran (Word of Allah) and Ijtihad (Juristic decision).
Quran (Word of Allah) and Sunnah (Hadith). √

8. Mu’amalaat (Interactions) refers to man-to-man relationship for –

political activities.
economic activities.
social activities.
all of the above. √

9. The name of Islamic Bank which established in Egypt in 1963 is

Tabung Haji.
Dubai Islamic bank.
Islamic Development Bank.
Mit Ghamr Local Savings Bank. √

10. The differences between Islamic bank and conventional bank are –
 the prohibition of riba (interest, usury), gharar (excessive uncertainty) and haram
(impermissible) activities.
the implementation of profit and loss sharing (PLS) principle.
the emphasis on productivity and real economic activity (rather than credit worthiness).
all of the above. √

11. The principles of Islamic banking are -

prohibition of predetermined loan repayments as interest (riba).
making money out of money as being unacceptable.
prohibition of speculative behaviour (Gharar).
all of the above. √

12. The major component of the Islamic Banking and Finance Industry is –

Islamic Banking.
Takaful.
Islamic capital market.
all of the above. √

13. The key operating mechanism of Islamic Banking and Finance is –

only fund mobilization.

only fund utilization.
both fund mobilization and utilization. √
none of the above.

14. Fund mobilization is the process of raising funds to establish a viable financial institution
through –

the sale of shares only.

the receiving funds from depositors only.
both the sale of shares and receiving fund from depositors. √
 none of the above.

15. Fund utilization is the process of using the funds realized in Sharī'ah-compliant business.
These are –

sharing modes.
sale modes.
leasing modes.
all of the above. √

16. According to Shari’ah, Riba is –

a lawful increase.
an unlawful increase. √
no change.
none of the above.

17. Riba is strongly prohibited in –

Quran only.
Sunnah (Hadith) only.
Both Quran and Sunnah. √
none of the above.

18. In sunnah, ‘Riba Al-Fadl’ refers to the –

two commodities.
four commodities.
six commodities. √
none of the above.

19. Gold for Gold is prohibited to exchange with –

 same (equal) amount only.
more amount only. √
always prohibited.
none of the above.
20. Shari’ah allows the following exchange.

2 kg low quality dates with 1 kg high quality dates.

2kg rice with 3 kg wheat. √
1 gold coin with 2 coins gold coins.

1 silver coin with 2 silver coins.

MCQ. Banking or banking action that is consistent with main beliefs of Shariah and its realistic
application from beginning to end improvement of Islamic economics is

A. islamic banking
B. development Bank
C. conventional banking
D. b& c

Answer

MCQ. A number of Islamic banks were formed to provide to this particular banking market in
late

A. 20th century
B. 19th century
C. 18th century
D. none of all of these

Answer

MCQ. A bank is considered as a custodian and trustee of money is

A. Wadiah
B. safekeeping
C. a&b
D. Hibah

Answer
MCQ. Negotiation of a selling price among two parties exclusive of reference by seller to either
costs or asking price is

A. ijarah wa iqtna
B. ijarah
C. musawamah
D. musharika

Answer

MCQ. Earliest Islamic bank was established in Malaysia in

A. 1980
B. 1983
C. 1982
D. 1988

Sukuk is Arabic name stand for

A. financial liabilities
B. financial certificates
C. financial assets
D. financial loans

Answer

MCQ. A type of partnership where one party offer funds while other gives expertise and
management is

A. murabaha
B. musharika
C. ijarah
D. mudarabah

Answer

MCQ. Shirkat-ul-wujooh has its origin in Arabic word

A. wajahat
B. wajahee
C. waujooh
D. wajhee
 Answer

MCQ. Word Musharika is originated from the

A. latin word
B. arabic word
C. persian word
D. french word

Answer

MCQ. Shirkat-ul-wujooh has its origin in Arabic phrase Wajahat meaning

A. reputation
B. goodwill
C. liabilities
D. assets

Answer

er MCQ. Which is liability side financing out of these means

A. large enterprise financing

B. t-bills and federal investment bonds / debenture
C. inter- bank lending / borrowing
D. b&c

Answer

MCQ. Expression Finance Certificates & Certificate of Investment in Musharika is

A. liability side financing

B. liability
C. assets
D. assets side financing

Answer

MCQ. What is asset side financing out of these means

A. large enterprise financing

 B. import financing
C. Letter of credit with margin (for musharika)
D. all of answers are correct

Answer

MCQ. A pioneering attempt, in Shariah compliant investments banking was undertaken in 1963
in

A. Oman
B. Saudia Arabia
C. Egypt
D. Pakistan

Answer

MCQ. Giving share of investor to customer on lease is the

A. basis of musharika
B. basis of diminishing musharika
C. basis of ijarah
D. basis of hibah

Answer

MCQ. An agreement in which advance fee is made for commodities to be delivered afterwards
on is

A. murabaha
B. bai salam
C. ijarah
D. b& c

Answer

MCQ. Whose outcomes are concealed is gharar describes by

A. hanafi school
B. hanbali school
C. zahiri school
D. shafi school
 Answer

MCQ. Banks are dealing a large number of commodities and services and facing a strong
competition to attract

A. potential buyers
B. potential customers
C. potential employees
D. potential sellers

Answer

MCQ. Word Musharika is originated from Arabic word Sharikah meaning

A. friends
B. ijarah
C. lessor
D. partnership

Answer

MCQ. A assets in Shirkat-ul-milk is mutually possessed but not separated yet, is known as

A. shirkat-ul-milk
B. shirkat-al-aqd
C. shirkah
D. musha

MCQ. A most ordinary kind of Shirkat-ul-Aqd where equality in capital, management or

liability might be identical in one case but not in all respect meaning either profit is equal but not
labour or vice versa is

A. shirkat-ul-aqd
B. shirkat-ul-ainan
C. shirkat-ul-dain
D. shirkat-ul-milk

Answer

MCQ. Profits shall be divided in ratio mutually settled in the

A. deed
 B. contract
C. prescribed
D. all of answers are correct

Answer

MCQ. Working capital financing in Musharika is

A. liability side financing

B. asset side financing
C. assets
D. liabilities

Answer

MCQ. How much etc in Musharika is related to

A. quantified
B. ma'loom
C. specified
D. a&b

Answer

MCQ. Products of first type may be given to Musharika in capital while second kind of products
cannot be a part of capital observation of

A. Imam Maliki
B. Imam Hanafi
C. Imam Shafi
D. Imam Hanabli

Answer

MCQ. To generate joint possession in assets is

A. shirkat
B. shirkat-al-aqd
C. shirkat-al-milk
D. musharika

Answer
MCQ. This happens when a person hires a representative to carry out transactions on his/her
behalf, like to a

A. wadiah
B. power of attorney
C. wakalah
D. b& c

Answer

MCQ. Where everyone partner contribute some capital into a commercial venture is

A. partnership in capital
B. shirkat-ul-amwal
C. a&b
D. shirkat-ul-abdan

Answer

MCQ. Investments given by all partners/shareholders known to as

A. partners
B. ijarah
C. murabah
D. takaful

Answer

MCQ. Mutually or equally using an asset by taking twists under conditions where partners or
joint vendors are on superior stipulations is

A. musharika intifa
B. musharika
C. ijarah
D. hibah

MCQ. It is authorized that if a partner is not working, his profit share can be recognized as less
than his capital share is fundamental law of musharika

A. distribution of loss
B. distribution of profit
C. distribution of interest
 D. b & c

Answer

MCQ. A method where payments are prepared in phases to aid stage wise progress in
Manufacturing / processing / building works is

A. Istisna
B. ijarah wa iqtna
C. takaful
D. wadiah

Answer

MCQ. Islamic banking structure is based on

A. risk sharing
B. interest sharing
C. a&b
D. premium sharing

Answer

MCQ. Sharikah is chief term than

A. ijarah
B. murabaha
C. musharika
D. shirkat-ul-ainan

Answer

MCQ. Qur'an forbids

A. gambling
B. interest sharing
C. gharar
D. all of answers are correct

Answer

Mainly ideal financing arrangement and holding higher command Shariah compliance is
 A. Pakistan
B. salam
C. musawamah
D. hibah

Answer

MCQ. An Ordinance was propagates to permit establishment of

A. mudaraba companies
B. musharika companies
C. murabah companies
D. all of answers are correct

Answer

MCQ. Deal is considered Salam if buyer has compensated purchase price to seller in

A. full at time of loss

B. partial at time of sale
C. at time of sale
D. full at time of sale

Answer

MCQ. Literally it means a trade on mutually settled profit is

A. murabaha
B. ijarah
C. musawamah
D. ijarah wa iqtna

Answer

MCQ. Musharika permits every party involved in a trade to distribute in profits and

A. interest
B. premium
C. loss
D. gharar

Answ Prevention of a risk free return and authorization of trading, as enshrined in Verse
 A. 2:278 of Holy Quran
B. 2:276 of Holy Quran
C. 2:275 of Holy Quran
D. 2:273 of Holy Quran

Answer

MCQ. A key concern for Muslims states and recently Islamic banks are

A. loans
B. advances
C. microfinance
D. premium

Answer

MCQ. Losses are shared by each partner in ratio to their

A. work
B. profit
C. loss
D. capital

Answer

MCQ. Islamic Shariah forbids

A. all loss on capital

B. all gains on loans
C. all gains on bonds
D. all gains on capital

Answer

MCQ. A coupon given willingly by a debtor in return for a credit is

A. bound
B. hibah
C. gift
D. b& c
Combination of capital is not compulsory is

A. basic rules of capital in musharika

B. basic rules of capital in ijarah
C. basic rules of capital
D. basic rules of capital in lease

Answer

MCQ. Phrase that is not related to books of Fiqh is

A. shirkah
B. ijarah
C. musharika
D. sharing

Answer

MCQ. First Islamic bank was recognized in

A. Pakistan
B. Oman
C. Malaysia
D. Qatar

Answer

MCQ. A joint project or partnership formation with profit/loss contribution implications that is
used in Islamic finance as an alternative of interest-bearing loans is

A. ijarah
B. musharika
C. murabah
D. hibah

Answer

MCQ. Profit is based on accord of parties, but loss is all time issue to proportion of

A. capital
B. investment
C. work
D. a & b

Answer D

Answer

er