15 Questions
Which rate is set higher than the actual variable rate charged to the client?
Ceiling profit-rate
What is the difference between the ceiling rate and effective variable rate?
Ibra' (rebate)
When can Islamic banks adjust their effective rate above the ceiling rate?
When the market interest rate is lower than the contracted ceiling rate
Which type of financing instrument is musharakah mutanaqisah primarily used for?
Property venture
Which banks provide musharakah mutanaqisah financing instruments?
HSBC Amanah (UK)
What is the definition of istisna'?
A request to manufacture or construct something
Which term is commonly used to refer to Islamic hire purchase in automobile financing?
Al-ijarah thumma al-bay’ (AITAB)
What does the term 'ijarah wa iqtina' imply in automobile financing?
The transaction is underlined by a leasing contract
How is the transfer of ownership in automobile financing typically affected?
By executing a sale contract with a nominal price
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?
Al-ijarah thumma al-bay'
What is the main difference between ijarah muntahiyah bittamlik and al-ijarah thumma al-bay'?
The transfer of ownership is mandatory in ijarah muntahiyah bittamlik but not in al-ijarah thumma al-bay'
What term is sometimes used interchangeably with ijarah muntahiyah bittamlik?
Ijarah wa iqtina
Which of the following best describes working capital?
The management of current assets and liabilities in a company's balance sheet
Why is proper management of working capital important for businesses?
To maintain a positive cash flow
What does the term 'working capital' encompass in a company's balance sheet?
Current assets and current liabilities
Test your knowledge on the concept of ceiling profit-rate and ibra' in deferred terms sales. This quiz will assess your understanding of the difference between the ceiling rate and effective variable rate, as well as the calculation and return of ibra' each month.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
