Participation Banking Quiz
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Questions and Answers

What is the fundamental principle of participation banking?

  • Flexible interest rates
  • Interest-based investments
  • Prohibition of interest (correct)
  • High-interest rates

    • What are the types of businesses considered haram in participation banking?

  • Technology, healthcare, and agriculture businesses
  • Real estate, construction, and automotive businesses
  • Alcohol, gambling, and pork-related businesses (correct)
  • Retail, manufacturing, and energy businesses

    • What is the legal framework for participation banking derived from?

  • Quran and the Hadith (correct)
  • Bhagavad Gita and Upanishads
  • Bible and Torah
  • Zend-Avesta and Guru Granth Sahib

    • What financial component is replaced in participation banking?

    <p>Interest</p> Signup and view all the answers

    What is another term for participation banking?

    <p>Islamic banking</p> Signup and view all the answers

    What are the key principles of Shariah that participation banking is based on?

    <p>The key principles of Shariah that participation banking is based on include the prohibition of interest and the avoidance of investments in businesses considered haram.</p> Signup and view all the answers

    How does participation banking differ from conventional banking in terms of interest?

    <p>Participation banking prohibits interest, whereas conventional banking incorporates interest into many financial products.</p> Signup and view all the answers

    What are some examples of businesses considered haram in participation banking?

    <p>Businesses related to alcohol, gambling, and pork are considered haram in participation banking.</p> Signup and view all the answers

    How is the legal framework for participation banking derived?

    <p>The legal framework for participation banking is derived from the Quran and the Hadith, which form the basis of Shariah.</p> Signup and view all the answers

    What is the primary objective of offering financial services and products in participation banking?

    <p>The primary objective of offering financial services and products in participation banking is to ensure compliance with Islamic ethical and legal principles.</p> Signup and view all the answers

    What are the foundational principles of participation banking based on?

    <p>The principles of Shariah, derived from the Quran and the Hadith.</p> Signup and view all the answers

    How does participation banking differ from conventional banking in terms of interest?

    <p>Participation banking prohibits interest, while conventional banking incorporates interest into financial products.</p> Signup and view all the answers

    What types of businesses are considered haram in participation banking?

    <p>Businesses related to alcohol, gambling, and pork.</p> Signup and view all the answers

    What is the main objective of participation banking with regard to financial services and products?

    <p>To offer services and products that are compliant with Islamic ethical and legal principles.</p> Signup and view all the answers

    What is the legal framework that participation banking operates in accordance with?

    <p>Islamic law, or Shariah.</p> Signup and view all the answers

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