MCQ Bank

Paid agency is a compensatory contract because the agent receives payment for providing services. Nikah, gift, and money lending are generally considered non-compensatory contracts.

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Q75

In a Modarabah, the person who adds his labor to the capital of financier is called………………..

A) Rab-ul-Mal
B) Raees
C) Modarib
D) Madroob

AI Explanation

In a Modarabah arrangement, the person who provides capital is Rab-ul-Mal, while the person who contributes labour and manages the business is called Modarib. The Modarib shares profit according to the agreed ratio.

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Q76

How many types of ownership in Islamic concept.

A) 1
B) 4
C) 3
D) 2

AI Explanation

In Islamic ownership concepts, ownership is generally divided into two main types: ownership of physical things and ownership of benefits (usufruct). These categories explain the different rights a person may have over property.

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Q77

Which of the following is a condition of Musharakah?

A) The Business Must be Lawful
B) Fixing the Rate of Profit
C) All of the given options
D) Liability for Loss

AI Explanation

A lawful business activity is an essential condition for Musharakah. Fixing profit as a guaranteed amount is not allowed, and liability for loss follows Islamic partnership rules rather than being a condition chosen freely.

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Q78

Which of the following type of possession is not acceptable as per Islamic financial law?

A) Physical Possession
B) Absolute Possession
C) Constructive Possession
D) Hypothetical Possession

AI Explanation

Islamic financial law recognises actual physical possession and constructive possession in transactions. Hypothetical possession is not considered a valid form of possession.

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Q79

Which of the following is Haram if it causes wounds to the individual or society?

A) All of the above
B) Activities
C) Games
D) Products

AI Explanation

Any activities, games, or products that cause harm or wounds to individuals or society can be considered prohibited. Therefore, all the given options are included.

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Q80

Gift is an example of a…………… type of contract

A) Compensatory
B) Non-compensatory
C) Bilateral
D) Void

AI Explanation

A gift (Hiba) is a non-compensatory contract because ownership is transferred without receiving any exchange or consideration. It is based on voluntary transfer rather than a transaction involving compensation.

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Q81

On which of the following the concept of Halal & Haram is applicable?

A) Food
B) Income
C) All of the given options
D) Expense

AI Explanation

The concepts of Halal and Haram apply to various aspects of life, including food, income, and expenses. Islamic principles guide the permissibility of all these areas.

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Q82

Which of the following is true about Mudarbah?

A) Unequal contribution of capital
B) All of the given options
C) Equal contribution of capital
D) One party contribute capital, other conducts the business

AI Explanation

Mudarabah involves one party providing capital and another conducting the business. It also involves unequal capital contribution because only one party provides the capital.

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Q83

Which is the most common type of Partnership ?

A) Shirkat-ul-Wojooh
B) Shirkat-ul-Mufawadah
C) None of the given options
D) Shirkat-ul-Inan

AI Explanation

Shirkat-ul-Inan is considered the most common type of partnership in Islamic commercial law. It allows partners to contribute capital and participate in business according to agreed terms.

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Q84

Gharar is Arabic word which means___________.

A) Sure loss
B) Uncertainty
C) Certainty
D) Sure profit

AI Explanation

Gharar is an Arabic term that refers to excessive uncertainty, ambiguity, or risk in a transaction. Islamic finance prohibits contracts containing significant Gharar.

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Q85

Excessive expenditures on unnecessary wants, Use of gold silver vessels, high expenditures on marriages fall in----------------.

A) Basics
B) Necessaries
C) Luxuries
D) None of the above

AI Explanation

Excessive spending on unnecessary wants, expensive items, and extravagant ceremonies falls under luxuries. Such expenditures are beyond basic needs and necessities.

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Q86

From an economic point of view following prevents a society from achieving the level of full employment.

A) Marginal profit
B) Trade
C) Interest
D) Inflation

AI Explanation

From an economic perspective, interest can reduce investment and prevent an economy from reaching full employment. Islamic economics prohibits interest-based systems due to these and other concerns.

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Q87

Which of the following attracts wealthy people to give money as loan instead of starting a business?

A) Fixed receivables
B) Loss sharing
C) All of the given options
D) Profit sharing

AI Explanation

Fixed receivables from lending attract wealthy people because they provide guaranteed returns without bearing business risk. This discourages direct investment and entrepreneurship.

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Q88

Islamic Financial law, known as ________

A) Islamic law
B) Fiqh ul maadiyat
C) Ijarah
D) Fiqh ul muammalat

AI Explanation

Islamic financial law is known as Fiqh ul Muammalat, which deals with transactions, contracts, and commercial activities. It provides the rules governing financial dealings in Islam.

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Q89

--------------- is one who does not spend on himself and his family according to his means.

A) Miser
B) Follower
C) Moderator
D) Spendthrift

AI Explanation

A miser is a person who does not spend appropriately on himself and his family despite having the means to do so. Islam encourages balanced spending and discourages both miserliness and extravagance.

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Q90

Immediate delivery of subject matter along with immediate price payment is called……………..

A) Future sale
B) Advance sale
C) Spot price sale
D) Deferred price sale

AI Explanation

A spot price sale involves immediate delivery of the subject matter and immediate payment of the price. Both obligations are fulfilled at the time of the transaction.

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Q91

You take a loan from Mr.D and keep your gold set with him so that Mr. D trusts you. This transaction is called…………..

A) Insurance
B) Pledge
C) Guarantee
D) Warranty

AI Explanation

A pledge is a transaction where an asset is given as security for a loan. The gold set kept with the lender as security is an example of a pledge.

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Q92

The distribution of wealth in a society becomes---------------- following due to interest. Interest is an overhead charge which does not form part of any factor of production

A) Equitable
B) Incremental
C) Marginal
D) Inequitable

AI Explanation

Interest-based systems can contribute to unequal distribution of wealth because lenders receive fixed returns without sharing business risks. This may increase the gap between different sections of society.

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Q93

Immediate delivery of subject matter along with credit price is called……………….

A) Deferred price sale
B) Future sale
C) Spot price sale
D) Advance sale

AI Explanation

A deferred price sale occurs when the subject matter is delivered immediately but the payment is made later on credit. The price payment is postponed while delivery is immediate.