UDC2007 – Islamic Finance Chapter 2 Quiz

Play an AI-generated podcast conversation about this lesson

What does 'riba' refer to in the Islamic financial system?

Growth and expansion of business

Conditional extra amount paid by the borrower to the lender (correct)

Prohibition of short sales

Ethical goods and services

Which practice is prohibited in the Islamic financial system due to its association with deception and speculation?

Prohibition of unfairness

Prohibition of gambling

Prohibition of monopolies

Prohibition of gharar (correct)

What is the main principle of the Islamic financial system with regard to usury?

Unfair conditional extra amount paid by the borrower to the lender

Prohibition of riba (usury) (correct)

Prohibition of dealing in unethical goods or services

Growth and expansion of financial assets

What is considered a prohibited practice in the Islamic financial system due to money being viewed as a medium, not a commodity?

Prohibition of money trading Signup and view all the answers

What is the meaning of Riba al-Nasiah?

Riba of delay Signup and view all the answers

When does Riba al-Fadl arise?

When there is any additional quantity or inequality in the exchange of goods Signup and view all the answers

What form of riba could be viewed in loan contracts?

Riba al-Qardh Signup and view all the answers

Why is riba considered a form of injustice and exploitation?

It contradicts the core Islamic teachings of social justice Signup and view all the answers

What did the Prophet (pbuh) do regarding a person who died indebted?

He refused to offer salat-ul janazah Signup and view all the answers

From an Islamic point of view, what function should money serve?

It should not be utilized for fulfilling human needs directly Signup and view all the answers

What is the main consequence of interest-based financing according to Islamic perspective?

Results in more wealth collected by lenders without exerting much effort or contributing to productive activity Signup and view all the answers

What does Riba al-Jahilliyah involve?

A form of interest charged above the original debt as a penalty to the debtor due to inability to service the loan repayment within the time agreed Signup and view all the answers

What is the meaning of Riba al-Qardh?

A predetermined benefit for the owner of debt stated in the contract Signup and view all the answers

What does Riba al- Duyun involve?

A form of interest charged above the original debt as a penalty to the debtor due to inability to service the loan repayment within the time agreed Signup and view all the answers

What could be concluded from Islamic teachings about lending money?

Borrowing money should be limited to cases of dire needs Signup and view all the answers

In the context of Islamic finance, which practice is prohibited due to its association with deception and speculation?

Gharar Signup and view all the answers

What is the Arabic meaning of the term 'riba' in the context of Islamic finance?

Usury Signup and view all the answers

Which form of riba involves any predetermined and conditional extra amount paid by the borrower to the lender above the principal?

Riba al-Nasiah Signup and view all the answers

What is prohibited in the Islamic financial system due to money being considered a medium and not a commodity?

Money trading Signup and view all the answers

What is the meaning of Riba al-Qardh?

Any predetermined benefit for the owner of debt Signup and view all the answers

What form of riba could be viewed in loan contracts?

Riba al-Duyun Signup and view all the answers

When does Riba al-Fadl arise?

When there is any additional quantity or inequality in the exchange of goods Signup and view all the answers

Why is riba considered a form of injustice and exploitation?

It guarantees return with no involvement in risk Signup and view all the answers

What is the main consequence of interest-based financing according to Islamic perspective?

Increased wealth collected by lenders without contributing to productive activity Signup and view all the answers

What does 'riba' refer to in the Islamic financial system?

All forms of interest Signup and view all the answers

From an Islamic point of view, what function should money serve?

'Money should not be utilized for fulfilling human needs directly' Signup and view all the answers

'Riba al-Jahilliyah' refers to:

'Interest charged due to delay in repayment' Signup and view all the answers

What could be concluded from Islamic teachings about lending money?

Lending money should be limited to dire needs Signup and view all the answers

What did the Prophet (pbuh) do regarding a person who died indebted?

He refused to offer salat-ul janazah for the person Signup and view all the answers

What does Riba al-Nasiah involve?

Interest charged due to delay in repayment Signup and view all the answers

UDC2007 – Islamic Finance Chapter 2 Quiz

Choose a study mode

Podcast

Questions and Answers

What does 'riba' refer to in the Islamic financial system?

Which practice is prohibited in the Islamic financial system due to its association with deception and speculation?

What is the main principle of the Islamic financial system with regard to usury?

What is considered a prohibited practice in the Islamic financial system due to money being viewed as a medium, not a commodity?

What is the meaning of Riba al-Nasiah?

When does Riba al-Fadl arise?

What form of riba could be viewed in loan contracts?

Why is riba considered a form of injustice and exploitation?

What did the Prophet (pbuh) do regarding a person who died indebted?

From an Islamic point of view, what function should money serve?

What is the main consequence of interest-based financing according to Islamic perspective?

What does Riba al-Jahilliyah involve?

What is the meaning of Riba al-Qardh?

What does Riba al- Duyun involve?

What could be concluded from Islamic teachings about lending money?

In the context of Islamic finance, which practice is prohibited due to its association with deception and speculation?

What is the Arabic meaning of the term 'riba' in the context of Islamic finance?

Which form of riba involves any predetermined and conditional extra amount paid by the borrower to the lender above the principal?

What is prohibited in the Islamic financial system due to money being considered a medium and not a commodity?

What is the meaning of Riba al-Qardh?

What form of riba could be viewed in loan contracts?

When does Riba al-Fadl arise?

Why is riba considered a form of injustice and exploitation?

What is the main consequence of interest-based financing according to Islamic perspective?

What does 'riba' refer to in the Islamic financial system?

From an Islamic point of view, what function should money serve?

'Riba al-Jahilliyah' refers to:

What could be concluded from Islamic teachings about lending money?

What did the Prophet (pbuh) do regarding a person who died indebted?

What does Riba al-Nasiah involve?

More Like This

Islamic Finance Company Quiz and Flashcards

Islamic Banking and Finance Quiz

Islamic Banking and Finance Quiz

Islamic Economics: Prohibition of Riba

Upgrade to continue