MCQ Bank
In case of default in Murabaha, the customer has to pay a certain extra amount to the bank which:
- A) Becomes the part of the income of the bank and is used for Starting new Musharaka based project
- B) Does not become the part of the income of the bank and is used only for advancing loans on Qarz e Hasana basis
- C) Becomes the part of the income of the bank and is used for advancing various types of loans
- D) Does not become the part of the income of the bank and is used only for charitable purposes
All of the following statements about Mudarabah contract are correct EXCEPT:
- A) Mudarib is not liable for loss and destruction
- B) Guarantee/security can be taken from Mudarib
- C) Mudarabah fund is trust
- D) Mudarib is Ameen i.e. is trustee
Which of the following statement is TURE regarding Murabaha?
- A) In case of default, the price of commodity can be increased
- B) In case of default, the price of commodity can be decreased
- C) In case of default, the price of commodity can only be increased but not decreased
- D) In case of default, the price of commodity can neither be increased nor decreased
All of the following ‘Options’ are allowed in Istisna contract EXCEPT:
- A) Option of Inspection
- B) Option of Stipulation
- C) Option of Determination
- D) Option of Session
Contract whereby a person offers specified compensation to anyone for achieving a predetermined work, task or result is called:
- A) Kafala
- B) Ijara
- C) Jualah
- D) Hawala
In Murabaha, which of the following party is appointed as agent by Islamic bank?
- A) Creditor
- B) Guarantor
- C) Client
- D) Seller
Where two or more persons invest a sum of money (mal) in a business and share its profits according to agreement, is called:
- A) Sharikatul-Wujooh
- B) Sharikatul-Amwal
- C) Sharikatul-Aamal
- D) Sharikatul-Milk
An Islamic bank purchases 100 bags of wheat from farmer by way of Salam contract which is to be delivered on 31st December 2020. This Islamic bank on the other hand also enters into contract with Mr. B to sell 100 bags of wheat to be delivered on 31st December 2020. This is an example of:
- A) Salam
- B) Parallel Salam
- C) Istisna
- D) Parallel Istisna
Contract on usufruct or use of a thing for known consideration is called:
- A) Ijara
- B) Kafala
- C) Hawala
- D) Juala
In a Salam contract, the bank can dispose of the Salam commodity in all of the following ways EXCEPT:
- A) Undertaking by the third party to buy goods
- B) Buy back agreement with seller
- C) Murabahah contract with third party
- D) Parallel Salam with third party
In Islamic financial contracts, the evidence of Salam contract is found in:
- A) Hadith
- B) Ijma
- C) Qiyas
- D) Quranic Verses
A partnership, in which a party after participation in ownership of an asset can redeem his capital gradually, is called:
- A) Investment partnership
- B) Work partnership
- C) Credit partnership
- D) Diminishing partnership
A partnership in which one partner provides capital and other work and time is called:
- A) Musawamah
- B) Musharakah
- C) Mudarabah
- D) Murabaha
All of the followings are the agent’s duties towards principal EXCEPT:
- A) To act according to terms of agency
- B) To exercise due care and skill
- C) Not to make secret profit
- D) To make sub-agent
Which of the following schools of thoughts considers that promise is binding under dire need:
- A) Hanafi school of thought
- B) Hanbali school of thought
- C) Maliki school of thought
- D) Shafi school of thought
Which of the following statements is TRUE regarding ‘Salam’?
- A) Full price of commodity must be paid in advance
- B) Commodity must be in the ownership of seller
- C) Commodity must exist at the time of sale
- D) Commodity must be in possession of seller
A, a bank purchased from B, a client 1000 bags of wheat to be delivered on 31, December. Now A, can contract with C to deliver to him 1000 bags on 31, December. It is an example of:
- A) Salam and parallel Salam
- B) Salam and parallel Murabaha
- C) Salam and parallel Mudarabah
- D) Salam and parallel Musharaka
Promises are NOT legally enforceable according to:
- A) Shafi and Maliki schools of thoughts
- B) Hanafi and Shafi schools of thoughts
- C) Maliki and Hanafi schools of thoughts
- D) Hanbali and Shafi schools of thoughts
Which of the following factor should NOT be included in cost of the asset in Murabaha sale contract?
- A) Installation charges
- B) Carriage expense
- C) Cost of asset
- D) All of the given
Which of the following is NOT the right of partner in Sharikatul-Amwal (investment partnership)?
- A) Each partner may appoint agent for business transactions
- B) He has the right to extend gifts and loan, from partnership fund
- C) Right to travel with partnership property with explicit permission of other partners
- D) He has right to mortgage or pledge i.e. to give property as pledge