Introduction to Islamic Banking and Finance Quiz
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Questions and Answers

What is the estimated market size of the Islamic finance market by 2020?

  • USD 2.5 trillion
  • USD 3.25 trillion (correct)
  • USD 1.75 trillion
  • USD 4.5 trillion

    • How many Islamic financial institutions are there today?

  • Less than 200
  • Over 600 (correct)
  • Around 300
  • Approximately 900

    • What is the main reason for having an Islamic financial system?

  • Compliance to Shariah rules and principles in commercial transactions and wealth management (correct)
  • To engage in philanthropic endeavors
  • To transform the present state to accord more closely with the principles of Islam
  • To promote a specific political agenda

    • What does Shariah compliance refer to in the context of Islamic finance?

    <p>Desired objectives of Shariah to protect human maslahah (public interest)</p> Signup and view all the answers

    According to IFSA 2013, what does Shariah compliance mean?

    <p>Compliance to Shariah rules and principles as interpreted by the apex authority, Shariah Advisory Council of BNM</p> Signup and view all the answers

    What does Islamic finance primarily deal with?

    <p>Resource allocation, management, acquisition &amp; investment</p> Signup and view all the answers

    What is the primary objective of Shariah in Islamic Economics?

    <p>To achieve justice and well-being for society</p> Signup and view all the answers

    Which are the two primary sources of Shariah in Islam?

    <p>Quran and Sunnah</p> Signup and view all the answers

    What does Tawhid encompass in Islam?

    <p>Belief in God's existence and His contact with humans through His Messengers</p> Signup and view all the answers

    What are the three central economic problems addressed in Islamic Economics?

    <p>Distribution, production, management</p> Signup and view all the answers

    What are the pressing necessities (daruriyyat) in the three-stage development model of Maqasid Shariah?

    <p>Minimal requirement of barely sustainable human livelihood</p> Signup and view all the answers

    What is the primary propeller of economic development according to Islamic Economics?

    <p>'Well being' contribution directly or indirectly to better living standard</p> Signup and view all the answers

    What is the meaning of Al Mulk:2 in the context of Islamic Economics?

    <p>'Best in deed' contributing directly or indirectly to better living standard</p> Signup and view all the answers

    What does Maqasid Shariah elaborate scheme of values focus on?

    <p>Irrespective of religion, culture, and history</p> Signup and view all the answers

    What is the primary objective of an Islamic economy according to Maqasid Shariah?

    <p>To achieve overall objective of well-being</p> Signup and view all the answers

    What is the role of Shariah in Islamic laws and rules?

    <p>To govern the practices and activities of mankind with specific guidance</p> Signup and view all the answers

    What is the estimated market size of the Islamic finance market by 2020?

    <p>USD 3.25 trillion</p> Signup and view all the answers

    What is the primary reason for having an Islamic financial system?

    <p>To comply with Shariah rules and principles</p> Signup and view all the answers

    What is the primary propeller of economic development according to Islamic Economics?

    <p>Social justice</p> Signup and view all the answers

    What does Shariah compliance refer to in the context of Islamic finance?

    <p>Compliance to Shariah rules and principles</p> Signup and view all the answers

    What does the Islamic finance market primarily deal with?

    <p>Resource allocation and wealth management</p> Signup and view all the answers

    Why study Islamic finance according to the text?

    <p>To deal with resource allocation, management, acquisition &amp; investment</p> Signup and view all the answers

    What is the primary focus of Shariah?

    <p>Governing the practices and activities of mankind</p> Signup and view all the answers

    What do the Maqasid Shariah focus on?

    <p>Values shared by all human societies irrespective of religion, culture, and history</p> Signup and view all the answers

    What are the three central economic problems addressed in Islamic Economics?

    <p>Production decision, management decision, distribution decision</p> Signup and view all the answers

    What is the primary objective of an Islamic economy according to Maqasid Shariah?

    <p>Promoting social justice and well-being</p> Signup and view all the answers

    What is the role of Tawhid in Islam?

    <p>Belief in God's existence and contact with humans through his Messengers</p> Signup and view all the answers

    What is the primary propeller of economic development according to Islamic Economics?

    <p>'Well-being' or satisfaction of human wants</p> Signup and view all the answers

    What are the pressing necessities (daruriyyat) in the three-stage development model of Maqasid Shariah?

    <p>'Minimal requirement' for sustainable human livelihood</p> Signup and view all the answers

    What does Islamic Economics primarily deal with?

    <p>'Distribution of resources' to meet human needs</p> Signup and view all the answers

    What is the meaning of Al Mulk:2 in the context of Islamic Economics?

    <p>'Best in deed' contributing directly or indirectly to better living standards</p> Signup and view all the answers

    According to IFSA 2013, what does Shariah compliance mean?

    <p>Adherence to ethical business practices and social responsibility</p> Signup and view all the answers

    Study Notes

    Islamic Finance Market Overview

    • The estimated market size of the Islamic finance market reached $2.88 trillion by 2020.
    • There are over 400 Islamic financial institutions operating globally today.

    Purpose of Islamic Financial System

    • The main reason for having an Islamic financial system is to align economic activities with Islamic principles and values.
    • Shariah compliance in Islamic finance ensures that financial practices adhere to Islamic laws.

    Shariah Compliance and Principles

    • Shariah compliance refers to the observance of Islamic law in financial transactions, prohibiting usury (riba), excessive risk (gharar), and unethical investments.
    • According to IFSA 2013, Shariah compliance means ensuring that financial products and services are in line with Islamic teachings and ethical values.

    Focus of Islamic Finance

    • Islamic finance primarily deals with socio-economic development through ethical investment and risk-sharing models.
    • Key facets include promoting economic justice, equitable distribution of wealth, and avoidance of exploitation.

    Objectives and Principles of Islamic Economics

    • The primary objective of Shariah in Islamic economics is the welfare of society, ensuring balance and fairness in wealth distribution.
    • The two primary sources of Shariah in Islam are the Quran and the Hadith.

    Tawhid and Economic Development

    • Tawhid, or the oneness of God, encompasses a holistic view of life, promoting ethical and moral behavior in all activities, including economic actions.
    • The primary propeller of economic development in Islamic economics is the pursuit of justice, equity, and the eradication of poverty.

    Maqasid Shariah

    • Maqasid Shariah elaborates on an elaborate scheme of values focusing on the protection and promotion of human well-being in all aspects.
    • The primary objective of an Islamic economy according to Maqasid Shariah is to achieve the overall welfare of society and protect fundamental rights.

    Central Economic Problems in Islamic Economics

    • The three central economic problems addressed in Islamic economics include scarcity of resources, equitable distribution of wealth, and ethical economic behavior.
    • Pressing necessities (daruriyyat) in the three-stage development model of Maqasid Shariah include the preservation of life, religion, intellect, lineage, and property.

    Al Mulk:2 in Islamic Economics

    • Al Mulk:2 signifies the importance of life and the meaning of creation, indicating that wealth and resources are a trust from God meant for collective benefit.

    Importance of Studying Islamic Finance

    • Studying Islamic finance is crucial for understanding how financial practices can align with ethical values and contribute to sustainable economic development.
    • Shariah principles focus on promoting justice, fairness, and accountability within economic frameworks.

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    Description

    This quiz covers the fundamental concepts of Islamic banking and finance, including Islam and Shariah, Islamic economic system, Maqasid Shariah, and the history and development of Islamic banking and finance. It also explores the reasons for studying Islamic finance and addresses common arguments and misconceptions.

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