Musharaka is less risky than Mudarabah because it offers:

• A) More obligation to each and every partner
• B) Fewer rights to each and every partner
• C) More rights to each and every partner
• D) No rights to each and every partner

Which of the following mode of Islamic finance is used in construction projects?

• A) Tijarah
• B) Salam
• C) Ijarah
• D) Istisna

In which of the following transaction there is a delay between the bank buying the assets from the vendor and selling it to the customer?

• A) Mudarabaha
• B) Arbun
• C) Murabaha
• D) Musharakha

Which of the following does Islam encourage?

• A) Trading in risk via sale and purchase of risk
• B) Risk-management through risk coding
• C) Risk-management through risk sharing
• D) Risk-management through risk pricing

Which of the following contract is also regarded as an imbalance of management and control?

• A) Mudarabah
• B) Musharakah
• C) Istisna
• D) Salam

In Salam the risk of delivery of commodity on the due date is not of a much concern.

• A) False
• B) True
• C)
• D)

Risk is the possibility of ______________.

• A) Profit and loss
• B) Profit
• C) Loss
• D) Theft

Broadly there are ________ types of options.

• A) Five
• B) Three
• C) Two
• D) Four

How many notable ethical bodies are there for providing guidelines on code on ethical business conduct related to Islamic finance?

• A) Three
• B) Two
• C) Four
• D) Five

In which of the following schools of thought does a minority prohibit Arbun?

• A) Shafi
• B) Maliki
• C) Hanbali
• D) Hanafi

Which of the following is also called a security deposit?

• A) Arbun
• B) Hamish Jiddiya
• C) Tijarah
• D) Hiba

Which of the following is a risk-sharing instrument in Islamic banking products?

• A) Salam
• B) Murabaha
• C) Musharakah
• D) Istisna

Which of the following is an example of managing the risk through avoidance?

• A) Prohibition of gambling
• B) Murabaha
• C) Mudarabah
• D) Takaful

In the context of partnership, LLP stands for:

• A) Limited liability profit
• B) Local liability partnership
• C) Limited legal partnership
• D) Limited liability partnership

In which of the following, investors (rabul maal) are not allowed to interfere in day to day running of the business?

• A) Salam
• B) Mudarabah
• C) Istisna
• D) Musharakah

Which of the following is correct regarding the recognition of Risk in Islam.

• A) Islam recognizes the incident of risk in general life and business transactions
• B) Islam recognizes the incident of risk in general life only
• C) Islam does not recognize the incident of risk
• D) Islam recognizes the incident of risk in business transactions only

Which of the following provides a Shariah-compliant solution to the conventional call option?

• A) Mudarabah
• B) Murabaha
• C) Arbun
• D) Hiba

In order to get the risk management benefits, Salam seller enter into which of the following arrangement with a third party?

• A) Hamish Jiddiya
• B) Arbun
• C) Wa’ad
• D) Hiba

In which of the following, there is a risk of inability to deliver the commodity on the agreed date.

• A) Mudarabaha
• B) Murabaha
• C) Salam
• D) Musharakah

Mr A “buys a Put” option. In this case Mr A buys the option to sell in ___________.

• A) Future
• B) Any time
• C) Present
• D) Past