Securities Commission Shariah Resolutions II

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

In relation to the Islamic capital market, what does bai` muzayadah help to address?

The creation of a single currency for Islamic financial transactions
Shariah compliance in the market
The behavior of market participants seeking profits from price differences (correct)
The development of new Islamic financial instruments

What is the significance of the Shariah Advisory Council's resolution on bai` muzayadah in 1997?

It declared bai` muzayadah permissible in Islamic finance, opening new avenues for financial instruments. (correct)
It established a strict set of regulations for the use of bai` muzayadah in Islamic markets.
It created a new Islamic financial institution dedicated to promoting bai` muzayadah.
It prohibited bai` muzayadah as a form of Islamic finance.

Which of these is NOT a name for Bai` Muzayadah?

Bai` Fuqara
Bai` Man Kasadat Bidha`atuhu
Bai` Mahawij
Bai` As-Salam (correct)

What is the main argument used to justify the permissibility of Bai` Muzayadah?

It is a form of trading that has a long history and practice in the muamalat system. (A) Signup and view all the answers

Which of the following statements is NOT a reason why the scholars in the past debated the permissibility of Bai` Muzayadah?

The potential for it to become a form of interest-based money-lending. (C) Signup and view all the answers

Which of the following is NOT a key element of Bai` Muzayadah?

A fixed pre-determined price set by the seller. (D) Signup and view all the answers

What historical practice provided support for the permissibility of Bai` Muzayadah?

The practice of selling war booty by the Companions of the Prophet. (B) Signup and view all the answers

What was the Prophet Muhammad (peace be upon him) known to do when selling goods?

He would call out prices and invite bids from different buyers. (A) Signup and view all the answers

Which of the following best describes the concept of 'Talfiq' in Islamic jurisprudence?

An approach that combines two or more opinions within a school of thought to formulate a new opinion. (C) Signup and view all the answers

What is the primary difference between 'talfiq' and the process of identifying 'exceptions' to general rulings?

Talfiq involves combining multiple opinions, while identifying exceptions focuses on finding specific cases where general rules don't apply. (D) Signup and view all the answers

According to the provided text, which of these is NOT a common characteristic of 'musyarakah mutanaqisah'?

The financier always holds a majority share of the asset ownership. (B) Signup and view all the answers

What is the significance of musyarakah mutanaqisah in the context of the capital market?

It allows for the financing of large projects through shared ownership. (C) Signup and view all the answers

In the provided example of musyarakah mutanaqisah, ABC company buys a building for RM80 million and sells it to customers for RM100 million. Which of the following principles is likely to be applicable in this scenario?

Bai' bithaman Ajil (Deferred payment sale) (C) Signup and view all the answers

The use of 'sukuk' in the 'musyarakah mutanaqisah' example provided is primarily meant to:

Offer a mechanism for ABC company to raise funds through shared ownership. (A) Signup and view all the answers

What is the main objective of the Islamic Instrument Study Group (IISG) in accepting 'musyarakah mutanaqisah' as a permissible financial instrument?

To develop financial instruments that are compatible with the principles of Islamic jurisprudence. (B) Signup and view all the answers

Which of the following best describes the role of the Shariah Advisory Council in the context of the Islamic capital market?

To provide rulings on the permissibility of financial instruments and transactions. (D) Signup and view all the answers

What is the main reason the majority of Islamic Jurists disallowed `Bai` `Bima Yanqati` Bihi Si`r (BBMYS)?

The existence of jahalah (ignorance) in the price of the contract. (C) Signup and view all the answers

Which of the following scholars permitted `Bai` `Bima Yanqati` Bihi Si`r (BBMYS) in their respective schools of thought?

Imam Ahmad bin Hanbal and the Hanbali school (A) Signup and view all the answers

Which Islamic legal principle is applied to argue for the permissibility of `Bai` `Bima Yanqati` Bihi Si`r (BBMYS) by comparing it to an already established principle?

Qiyas (C) Signup and view all the answers

In the context of Islamic finance, what does the resolution regarding "Kafalah on Mudharabah Capital" address?

The permissibility of using a third-party guarantee to protect the capital invested in a mudharabah agreement. (A) Signup and view all the answers

How is the `Bai` `Bima Yanqati` Bihi Si`r (BBMYS) principle related to the concept of` Thaman al-Mithl`?

BBMYS is considered a specific application of <code>Thaman al-Mithl</code> in the context of future market prices. (C) Signup and view all the answers

What is the main argument used by proponents of `Bai` `Bima Yanqati` Bihi Si`r (BBMYS) regarding social acceptance?

The lack of any widespread opposition to the principle reflects its general acceptance as a facilitating mechanism in Islamic societies. (C) Signup and view all the answers

Which of the following is NOT a contributing factor to the debate surrounding the permissibility of `Bai` `Bima Yanqati` Bihi Si`r (BBMYS)?

The widespread usage of BBMYS in modern economies as a means to secure future financial commitments. (A) Signup and view all the answers

Flashcards

Manhaj

A methodology involving examination of general dalil related to hukm.

Talfiq

Introducing a new approach combining multiple opinions of a mazhab.