What is the primary source of guidance for Islamic economics?
a) Quran
b) Hadith
c) Sunnah
d) All of the above
Answer: d) All of the above
Which economic principle is fundamental to Islamic economics?
a) Interest (Riba)
b) Profit-sharing (Mudarabah)
c) Debt-based financing
d) Stock market speculation
Answer: b) Profit-sharing (Mudarabah)
What is the term for Islamic charitable giving or almsgiving?
a) Zakat
b) Sadaqah
c) Waqf
d) Khums
Answer: a) Zakat
In Islamic finance, what does “Takaful” refer to?
a) Interest-free loans
b) Profit-sharing agreements
c) Islamic insurance
d) Venture capital investments
Answer: c) Islamic insurance
What is the Islamic economic principle that prohibits uncertainty and excessive risk?
a) Gharar
b) Haram
c) Riba
d) Waqf
Answer: a) Gharar
What does the term “Halal” signify in Islamic economics?
a) Prohibited activities
b) Permissible and lawful activities
c) Interest-bearing transactions
d) Taxation practices
Answer: b) Permissible and lawful activities
Which Islamic finance principle involves the sale of goods at a marked-up price with deferred payments?
a) Mudarabah
b) Murabaha
c) Musharakah
d) Ijarah
Answer: b) Murabaha
What is the concept of “Musharakah” in Islamic economics?
a) Partnership or joint venture
b) Profit-sharing contract
c) Islamic bonds
d) Deferred payment arrangement
Answer: a) Partnership or joint venture
In Islamic finance, what does “Ijarah” refer to?
a) Profit-sharing agreement
b) Leasing or renting assets
c) Equity investment
d) Islamic bonds issuance
Answer: b) Leasing or renting assets
What is the Islamic term for a religious endowment or trust?
a) Zakat
b) Waqf
c) Khums
d) Sadaqah
Answer: b) Waqf
Which type of financial transaction is considered impermissible (Haram) in Islamic economics?
a) Profit-sharing
b) Interest-based lending
c) Charitable giving
d) Equity investments
Answer: b) Interest-based lending
What is the Islamic concept of “Qard al-Hasan”?
a) Interest-based loan
b) Charitable donation
c) Good loan or benevolent loan
d) Stock market investment
Answer: c) Good loan or benevolent loan
Which institution plays a significant role in promoting Islamic finance and banking?
a) World Bank
b) International Monetary Fund (IMF)
c) Organization of Islamic Cooperation (OIC)
d) Islamic Development Bank (IDB)
Answer: d) Islamic Development Bank (IDB)
What is the term for Islamic bonds that comply with Shariah principles?
a) Sukuk
b) Mudarabah bonds
c) Murabaha bonds
d) Ijarah bonds
Answer: a) Sukuk
What does the principle of “Maslaha” emphasize in Islamic economics?
a) Profit maximization
b) Public welfare and common good
c) Individual wealth accumulation
d) Market competition
Answer: b) Public welfare and common good
What is the ruling on speculative activities in Islamic finance?
a) Encouraged
b) Prohibited (Haram)
c) Allowed under certain conditions
d) Subject to taxation
Answer: b) Prohibited (Haram)
Which Islamic economic principle emphasizes fairness and justice in transactions?
a) Adl (Justice)
b) Istislah (Public Interest)
c) Ijtihad (Independent Reasoning)
d) Taqwa (God-Consciousness)
Answer: a) Adl (Justice)
What is the term for the Islamic concept of avoiding extravagance and excessiveness?
a) Israf
b) Fiqh
c) Ijarah
d) Musharakah
Answer: a) Israf
What is the primary objective of Islamic economics?
a) Maximizing profit
b) Ensuring social justice and equity
c) Promoting materialism
d) Encouraging individualism
Answer: b) Ensuring social justice and equity
In Islamic finance, what is the alternative to traditional interest-based loans?
a) Profit-sharing agreements
b) Debt-based financing
c) Venture capital investments
d) Bond issuances
Answer: a) Profit-sharing agreements
What is the Islamic term for the practice of excessive hoarding and accumulation of wealth?
a) Zakat
b) Riba
c) Taghut
d) Ihtikar
Answer: d) Ihtikar
Which Islamic finance principle encourages risk-sharing and mutual cooperation?
a) Takaful
b) Riba
c) Waqf
d) Zakat
Answer: a) Takaful
What is the Islamic term for financial transactions that involve uncertainty and ambiguity?
a) Israf
b) Gharar
c) Fiqh
d) Halal
Answer: b) Gharar
Which of the following is NOT a characteristic of Islamic finance?
a) Interest-free transactions
b) Prohibition of profit-sharing
c) Ethical investment principles
d) Emphasis on social welfare
Answer: b) Prohibition of profit-sharing
What is the ruling on engaging in trade and business activities in Islamic economics?
a) Encouraged as long as it generates profit
b) Discouraged due to the risk involved
c) Encouraged with ethical guidelines
d) Prohibited except for specific commodities
Answer: c) Encouraged with ethical guidelines
In Islamic finance, what is the concept of “Mudarabah” related to?
a) Interest-free loans
b) Profit-sharing partnership
c) Debt-based financing
d) Insurance contracts
Answer: b) Profit-sharing partnership
What is the ruling on engaging in speculative activities like gambling and betting in Islamic economics?
a) Encouraged as they can lead to quick wealth
b) Prohibited as they involve uncertainty and risk
c) Allowed under specific conditions
d) Subject to taxation
Answer: b) Prohibited as they involve uncertainty and risk
Which of the following is considered a key objective of Islamic economics?
a) Economic growth at all costs
b) Promoting social justice and eliminating poverty
c) Maximizing individual profits
d) Encouraging materialistic pursuits
Answer: b) Promoting social justice and eliminating poverty
What is the Islamic term for the prohibition of certain goods and activities?
a) Riba
b) Halal
c) Haram
d) Zakat
Answer: c) Haram
In Islamic economics, what is the significance of the concept of “Amanah”?
a) Fair pricing of goods and services
b) Trustworthiness and integrity in business dealings
c) Risk-taking and speculation
d) Charity and welfare programs
Answer: b) Trustworthiness and integrity in business dealings
Which of the following is NOT a form of Islamic finance?
a) Sukuk
b) Mudarabah
c) Securitization
d) Ijarah
Answer: c) Securitization
What is the Islamic term for the system of inheritance and wealth distribution?
a) Zakat
b) Wasiyyah
c) Mirath
d) Waqf
Answer: c) Mirath
In Islamic economics, what is the purpose of “Zakat”?
a) Social welfare and poverty alleviation
b) Profit maximization
c) Expansion of business ventures
d) Stock market investments
Answer: a) Social welfare and poverty alleviation
Which Islamic finance principle emphasizes the sharing of profits and losses?
a) Riba
b) Musharakah
c) Murabaha
d) Takaful
Answer: b) Musharakah
What is the ruling on engaging in fraudulent or deceptive practices in Islamic economics?
a) Encouraged for competitive advantage
b) Prohibited as they violate ethical principles
c) Allowed if it benefits the business
d) Subject to negotiation
Answer: b) Prohibited as they violate ethical principles
Which Islamic finance principle emphasizes the sanctity of contracts and agreements?
a) Ijarah
b) Istisna
c) Amanah
d) Murabaha
Answer: c) Amanah
What is the ruling on hoarding essential goods and creating artificial shortages in Islamic economics?
a) Encouraged for profit maximization
b) Prohibited as it harms society
c) Allowed under certain conditions
d) Subject to taxation
Answer: b) Prohibited as it harms society
Which Islamic economic principle emphasizes the importance of fulfilling contractual obligations?
a) Istisna
b) Riba
c) Wadiah
d) Wakalah
Answer: c) Wadiah
What is the Islamic term for a contract of agency or representation?
a) Tawarruq
b) Istisna
c) Wakalah
d) Murabaha
Answer: c) Wakalah
Which of the following is NOT a characteristic of Islamic banking?
a) Interest-based lending
b) Profit-sharing arrangements
c) Ethical investment screening
d) Asset-backed financing
Answer: a) Interest-based lending
In Islamic economics, what is the ruling on speculative investments that involve excessive risk?
a) Encouraged for potential high returns
b) Prohibited due to uncertainty and gambling elements
c) Allowed with proper risk management
d) Subject to charity donations
Answer: b) Prohibited due to uncertainty and gambling elements
What is the Islamic term for a contract of sale with deferred payment?
a) Murabaha
b) Salam
c) Istisna
d) Ijarah
Answer: b) SalamWhich Islamic finance principle emphasizes the concept of trust and safekeeping of assets?
a) Riba
b) Wakalah
c) Mudarabah
d) Murabaha
Answer: b) Wakalah
What is the Islamic term for a contract of manufacturing or construction?
a) Ijarah
b) Istisna
c) Salam
d) Musharakah
Answer: b) Istisna
Which Islamic economic principle emphasizes fair trade practices and prohibits deceitful transactions?
a) Ijarah
b) Gharar
c) Adl
d) Israf
Answer: c) Adl
What is the Islamic term for a contract of leasing or renting?
a) Ijarah
b) Salam
c) Istisna
d) Murabaha
Answer: a) Ijarah
In Islamic finance, what does “Tawarruq” refer to?
a) Profit-sharing agreements
b) Venture capital investments
c) Reverse murabaha transactions
d) Islamic insurance contracts
Answer: c) Reverse murabaha transactions
What is the concept of “Hawala” in Islamic finance?
a) Interest-free loans
b) Trust-based remittance system
c) Profit-sharing arrangement
d) Islamic bonds issuance
Answer: b) Trust-based remittance system
Which Islamic finance principle emphasizes the sharing of profits and losses in business ventures?
a) Riba
b) Mudarabah
c) Salam
d) Murabaha
Answer: b) Mudarabah
What is the ruling on engaging in unethical or exploitative business practices in Islamic economics?
a) Encouraged for competitive advantage
b) Prohibited as they violate ethical principles
c) Allowed under certain conditions
d) Subject to government regulation
Answer: b) Prohibited as they violate ethical principles
In Islamic finance, what is the significance of “Waqf”?
a) Interest-free loans
b) Charitable endowment or trust
c) Profit-sharing agreement
d) Venture capital investment
Answer: b) Charitable endowment or trust
What is the concept of “Qimar” in Islamic economics?
a) Fair pricing of goods and services
b) Speculative trading or gambling
c) Profit-sharing arrangement
d) Trust-based financing
Answer: b) Speculative trading or gambling
Which Islamic finance principle emphasizes transparency and disclosure in financial transactions?
a) Riba
b) Wakalah
c) Ijarah
d) Musharakah
Answer: b) Wakalah
What is the ruling on engaging in exploitative or unfair labor practices in Islamic economics?
a) Encouraged for cost savings
b) Prohibited as they violate ethical principles
c) Allowed under certain conditions
d) Subject to government intervention
Answer: b) Prohibited as they violate ethical principles
What is the Islamic term for a contract of deferred delivery of goods at a specified future date?
a) Murabaha
b) Salam
c) Istisna
d) Ijarah
Answer: b) Salam
In Islamic finance, what does “Maysir” refer to?
a) Fair trade practices
b) Speculative trading or gambling
c) Ethical investment screening
d) Profit-sharing agreements
Answer: b) Speculative trading or gambling
What is the concept of “Ghash” in Islamic economics?
a) Fair pricing of goods and services
b) Price manipulation and hoarding
c) Profit-sharing arrangement
d) Islamic bonds issuance
Answer: b) Price manipulation and hoarding
Which Islamic finance principle emphasizes the importance of mutual consent and agreement in contracts?
a) Wakalah
b) Ijarah
c) Amanah
d) Riba
Answer: c) Amanah
What is the ruling on engaging in environmentally harmful practices in Islamic economics?
a) Encouraged for economic growth
b) Prohibited as they harm nature
c) Allowed with environmental taxes
d) Subject to international treaties
Answer: b) Prohibited as they harm nature
In Islamic finance, what is the significance of “Mudharib”?
a) A form of partnership
b) A type of Islamic bond
c) Profit-sharing contract
d) A charitable donation
Answer: a) A form of partnership