Investment & Financing Losses Clause Quiz

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What is the guideline for charging expenses in Islamic banks?

Indirect expenses are charged to the respective pool, while direct expenses are borne by the bank as Mudarib.

All expenses are charged to the respective pool.

Direct expenses are charged to the respective pool, while indirect expenses are borne by the bank as Mudarib. (correct)

All expenses are borne by the bank as Mudarib.

What is the purpose of the investment ratio mentioned in the text?

It is used to set the deposit management guidelines in Islamic banks.

It is used to calculate the bank's return on investment.

The text does not mention anything about an investment ratio. (correct)

It is used to determine the profit distribution between the bank and the depositors.

What is the main focus of the text?

The deposit management guidelines in Islamic banks. (correct)

The establishment cost of Islamic banks.

The investment strategy of Islamic banks.

The profit distribution between Islamic banks and depositors.

Who bears the indirect expenses in Islamic banks?

The bank as Mudarib. Signup and view all the answers

What is the relationship between the bank and the depositors in an Islamic banking system?

The bank is the agent (Mudarib) and the depositors are the investors (Rabb al-Mal). Signup and view all the answers

Which type of entities can use the Istisna feature?

Small, medium, commercial enterprises & corporate entities Signup and view all the answers

What is the main purpose of the Istisna feature?

To enable the manufacturing of custom-made products Signup and view all the answers

What is the primary target market for the Istisna feature?

Small, medium, commercial enterprises & corporate entities Signup and view all the answers

Which of the following is NOT a characteristic of the Istisna feature?

It can only be used by non-profit organizations Signup and view all the answers

What is the primary function of the Istisna feature?

To facilitate the manufacturing of custom-made products Signup and view all the answers

Which of the following losses are not charged to the pool?

Losses due to misconduct by IBI Signup and view all the answers

What conditions must be met for losses on financings and investments to be charged to the pool?

None of the above conditions are mentioned Signup and view all the answers

If IBI breaches a contract, can the resulting losses be charged to the pool?

No, the text explicitly states that such losses cannot be charged Signup and view all the answers

What is the purpose of the statement provided in the text?

To define the types of losses that cannot be charged to the pool Signup and view all the answers

Which of the following entities is mentioned in the text?

Both (a) and (b) Signup and view all the answers

By when should the system limitations, if any, be addressed according to the instructions?

Within one year of issuance of the instructions Signup and view all the answers

What is the deadline for dealing with system limitations in relation to the issuance of these instructions?

Within one year of the issuance of the instructions Signup and view all the answers

When should system limitations, if any, be resolved based on the provided instructions?

Within one year of issuing the instructions Signup and view all the answers

What is the required timeframe for handling system limitations as per the given instructions?

Within one year of issuance of these particular instructions Signup and view all the answers

What is the maximum period allowed for dealing with system limitations as per these instructions?

One year after issuing these specific instructions Signup and view all the answers

What is the primary responsibility of the Shariah Compliance Department according to the given text?

To verify the distribution of profit and loss to depositors before disbursement Signup and view all the answers

Which department or unit is responsible for conducting a post-disbursement audit on a quarterly basis?

The internal Shariah Audit Unit Signup and view all the answers

What is the frequency of the post-disbursement audit conducted by the internal Shariah Audit Unit?

Quarterly Signup and view all the answers

Which of the following statements is NOT true based on the given information?

The Shariah Compliance Department is also responsible for conducting post-disbursement audits. Signup and view all the answers

Based on the information provided, what can be inferred about the relationship between the Shariah Compliance Department and the internal Shariah Audit Unit?

They have separate and distinct responsibilities related to Shariah compliance. Signup and view all the answers