ISLAMIC BANKING & FINANCE MULTIPLE CHOICE QUESTIONS (MCQS).
6. The Islamic financial system works on the basis of
(A) sharing return
(B) sharing risk
(C) sharing risk and return
(D) predetermined risk and return
7. In Islamic banking and finance, any deal must have an underlying _____ backing the deal.
8. A “sukuk” is basically a Shariah-compliant
(C) bank cheque
(D) investment certificate
9. “Takaful” is basically a Shariah-compliant
10. Which from the following is/are NOT permitted under Islamic Financial Principles?
II. Short selling
III. Non-asset backed derivatives
(A) I only
(B) I and II
(C) I and III
(D) I, II and III
ANSWERS: ISLAMIC BANKING AND FINANCE MCQS
6. (C) sharing risk and return
7. (A) asset
8. (D) investment certificate
9. (B) insurance
10. (D) I, II and III