(A) permitted
(B) not permitted
(C) permitted in certain cases
(D) permitted for Islamic banks only
The answer is: (B) not permitted
Category: Islamic Banking and Finance MCQs
Islamic Banking and Finance MCQs Quiz Test Questions with Answers. Islamic Finance and Islamic Principles of Banking and Finance Multiple Choice Questions. Islamic Finance Questions and Answers.
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
The answer is: (C) sharing risk and return
In Islamic banking and finance, any deal must have an underlying ________ backing the deal.
(A) asset
(B) profit
(C) risk
(D) currency
The answer is: (A) asset
A “sukuk” is basically a Shariah-compliant
(A) loan
(B) profit
(C) bank cheque
(D) investment certificate
The answer is: (D) investment certificate
“Takaful” is basically a Shariah-compliant
(A) loan
(B) insurance
(C) investment
(D) ownership
The answer is: (B) insurance
Which from the following is/are NOT permitted under Islamic Financial Principles?
I. Interest
II. Short selling
III. Non-asset backed derivatives
(A) I only
(B) I and II
(C) I and III
(D) I, II and III
The answer is: (D) I, II and III