1.What is Sharia-compliant banking also known as?
a. Islamic banking
b. Secular banking
c. Conventional banking
d. Interest-based banking
Answer: a. Islamic banking
2.Which principle of Sharia-compliant banking prohibits the payment or receipt of interest?
a. Riba
b. Musharakah
c. Murabaha
d. Takaful
Answer: a. Riba
3.What does the term “Takaful” mean in Sharia-compliant banking?
a. Interest
b. Charity
c. Insurance
d. Loan
Answer: c. Insurance
4.In Sharia-compliant banking, what is “Mudarabah”?
a. Profit sharing
b. Interest
c. Asset leasing
d. Cost-plus financing
Answer: a. Profit sharing
5.Which Islamic principle in banking refers to partnership or joint venture?
a. Murabaha
b. Mudarabah
c. Ijarah
d. Qard Hasan
Answer: b. Mudarabah
6.What does “Musharakah” mean in Sharia-compliant banking?
a. Profit sharing
b. Interest
c. Asset leasing
d. Insurance
Answer: a. Profit sharing
7.Which type of contract is commonly used in Sharia-compliant banking for asset financing?
a. Istisna
b. Murabaha
c. Tawarruq
d. Qard Hasan
Answer: a. Istisna
8.What does “Ijarah” refer to in Sharia-compliant banking?
a. Leasing
b. Profit sharing
c. Interest
d. Donation
Answer: a. Leasing
9.Which Islamic banking principle involves the sale of goods at a marked-up price?
a. Murabaha
b. Mudarabah
c. Ijarah
d. Tawarruq
Answer: a. Murabaha
10.What is “Wakalah” in Sharia-compliant banking?
a. Agency contract
b. Profit sharing
c. Interest
d. Asset financing
Answer: a. Agency contract
11.In Sharia-compliant banking, what is “Sukuk”?
a. Islamic bonds
b. Interest-bearing bonds
c. Share certificates
d. Loan agreements
Answer: a. Islamic bonds
12.What is the primary purpose of Sharia-compliant banking?
a. Maximizing shareholder profits
b. Providing interest-free loans
c. Following Islamic principles in financial transactions
d. Promoting global economic growth
Answer: c. Following Islamic principles in financial transactions
13.Which Islamic banking principle involves the exchange of goods or assets at a future date at a predetermined price?
a. Murabaha
b. Tawarruq
c. Ijarah
d. Istisna
Answer: d. Istisna
14.What is “Hawala” in Islamic finance?
a. Transfer of funds without the physical movement of money
b. Interest-free loans
c. A form of insurance
d. Profit-sharing agreement
Answer: a. Transfer of funds without the physical movement of money
15.What is “Qard Hasan” in Islamic banking?
a. Benevolent loan
b. Profit-sharing agreement
c. Islamic bonds
d. Leasing contract
Answer: a. Benevolent loan
16.Which Islamic banking principle allows for the pooling of funds for joint investments?
a. Tawarruq
b. Mudarabah
c. Ijarah
d. Murabaha
Answer: b. Mudarabah
17.What is “Zakat” in Islamic finance?
a. Mandatory alms-giving
b. Interest
c. Profit-sharing
d. Insurance
Answer: a. Mandatory alms-giving
18.Which Islamic banking principle involves the sale of goods on a deferred payment basis?
a. Tawarruq
b. Murabaha
c. Ijarah
d. Istisna
Answer: b. Murabaha
19.What is the term for the Islamic practice of giving to charity?
a. Sadaqah
b. Qard Hasan
c. Takaful
d. Hawala
Answer: a. Sadaqah
20.Which Islamic banking principle involves leasing assets with a pre-agreed rental payment?
a. Ijarah
b. Mudarabah
c. Murabaha
d. Tawarruq
Answer: a. Ijarah