18 Questions
What is the principle behind Musharikah in Islamic banking?
Profit and loss sharing
Which type of Islamic financial contract involves a lease cum purchase arrangement?
Ijarah Wa’ Iktina
In Islamic banking, what does Mudarabah represent?
Profit sharing principle
Which investment type in Islamic banking involves a diminishing partnership?
Diminishing Musharikah
Which of the following activities is typically excluded from ethical investments in Islamic finance?
Production of alcohol
What is the key feature of a Salam (Bai Salam) contract in Islamic finance?
Forward purchase
Which type of Islamic banking contract involves variable returns and is equity-based?
Mudarabah
In Islamic banking, which contract type is based on a deferred sale and is known as 'Deferred buy option with forfeiture of earnest money option'?
Bai Muajjal
Which Islamic financial contract involves profit and loss sharing and is based on business finance?
Mudarabah
What is the main principle behind Islamic credit cards as mentioned in the text?
Fee-based offerings without any charge of interest
Which type of Islamic banking contract involves mark-up based fixed returns?
Ijarah
'Riba' in Islamic finance refers to:
Excess or increase in capital without labor
What does Gharar refer to in Islamic finance?
Uncertainty about the terms of a contract
Which of the following is considered Maysir in Islamic finance?
Options trading
What is Ghubn related to in Islamic finance?
Price fixing
Which of the following is considered an ethical vice in Islamic banking?
Trading in weapons
What type of returns are broadly permissible in Islamic banks according to the text?
Share in profit/loss arising from trade & manufacture
What is NOT considered Yethi (Internal Permissible Returns) in Islamic banking according to the text?
Permissible increase by way of application of nominal interest rates
Test your knowledge on Islamic banking principles including concepts like Gharar, Maysir, Ghubn, and ethical vices. Explore topics such as unjustified increment in transactions, gambling, price fixing, and internal permissible returns in Islamic banks.
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