Ceiling Profit-Rate and Ibra' Quiz
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Questions and Answers

Which rate is set higher than the actual variable rate charged to the client?

  • Ceiling profit-rate (correct)
  • Ibra' (rebate)
  • Effective rate
  • Market interest rate
  • What is the difference between the ceiling rate and effective variable rate?

  • Selling price
  • Market interest rate
  • Ibra' (rebate) (correct)
  • Profit-rate
  • When can Islamic banks adjust their effective rate above the ceiling rate?

  • When the effective rate is lower than the ceiling rate
  • When the effective rate exceeds the ceiling rate
  • When the market interest rate exceeds the contracted ceiling rate
  • When the market interest rate is lower than the contracted ceiling rate (correct)
  • Which type of financing instrument is musharakah mutanaqisah primarily used for?

    <p>Property venture</p> Signup and view all the answers

    Which banks provide musharakah mutanaqisah financing instruments?

    <p>HSBC Amanah (UK)</p> Signup and view all the answers

    What is the definition of istisna'?

    <p>A request to manufacture or construct something</p> Signup and view all the answers

    Which term is commonly used to refer to Islamic hire purchase in automobile financing?

    <p>Al-ijarah thumma al-bay’ (AITAB)</p> Signup and view all the answers

    What does the term 'ijarah wa iqtina' imply in automobile financing?

    <p>The transaction is underlined by a leasing contract</p> Signup and view all the answers

    How is the transfer of ownership in automobile financing typically affected?

    <p>By executing a sale contract with a nominal price</p> Signup and view all the answers

    Which term is commonly used to refer to the structure where the lessee is given the asset as a gift at the end of the leasing period?

    <p>Al-ijarah thumma al-bay'</p> Signup and view all the answers

    What is the main difference between ijarah muntahiyah bittamlik and al-ijarah thumma al-bay'?

    <p>The transfer of ownership is mandatory in ijarah muntahiyah bittamlik but not in al-ijarah thumma al-bay'</p> Signup and view all the answers

    What term is sometimes used interchangeably with ijarah muntahiyah bittamlik?

    <p>Ijarah wa iqtina</p> Signup and view all the answers

    Which of the following best describes working capital?

    <p>The management of current assets and liabilities in a company's balance sheet</p> Signup and view all the answers

    Why is proper management of working capital important for businesses?

    <p>To maintain a positive cash flow</p> Signup and view all the answers

    What does the term 'working capital' encompass in a company's balance sheet?

    <p>Current assets and current liabilities</p> Signup and view all the answers

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