| Q.1 |
State True or False in
the answer column. (25) |
1 |
Islamic Shariah basically means set of Islamic
Laws designed to regulate an Islamic Society. |
2 |
Saving is highly discouraged in Islam. |
3 |
There is no difference between Riba Al-Quran
and Riba- Alhadith. |
4 |
Islamic Shariah believes in strictly regulating
supply and demand in a society. |
5 |
According to Islamic Law of Contract a unilateral
promise is equivalent to a Contract. |
6 |
Murabaha transaction can be executed without
disclosing cost. |
7 |
In a Mudarabah, Rabbul Mal cannot intervene
is a day to day management of the business. |
8 |
If the cost of Takaful is decreased after the
execution of Ijarah agreement, Islamic Bank is obliged to pass the
benefit to its customers. |
9 |
According to Islamic Shariah, there is no concept
of Undisclosed Agency Agreement as it may lead to cheating. |
10 |
According to Islamic Shariah, Jahalah and Qimar
are kind of Riba. |
11 |
Murabaha means a slae of goods by a person
to another under an arrangement whereby the seller is not obliged
to disclose to the buyer the cost of goods sold. |
12 |
In Mudarabah goods to be traded should be real,
but not necessarily tangible goods. |
13 |
Credit documents can be the subject of Murabaha.
|
14 |
It is not essential that the commodities which
are the subject of sale in a Murabaha transactions, must be existing,
owned by the seller and in his physical or constructive possession.
|
15 |
Murabaha, like other sales, does not require
an offer an offer and acceptance. |
16 |
The invoice issued by the supplier will be
in the name of the financier as the commodity would be purchased
by an agent on behalf of such financier. |
17 |
Once the sale transaction has been concluded,
the selling price determined can be changed. |
18 |
A Murabaha contract can be rolled over. |
19 |
Commodities already owned by the client cannot
become the subject of a Murabaha transaction between him and any
financier. |
20 |
All Murabaha transactions must be based on
the purchase of goods from third party(ies) by the bank for the
sale to the client. |
21 |
The promissory note or bill of exchange or
any evidence of indebtedness can be assigned or transferred on a
price different form its face value. |
22 |
Musawamah is a general kind of sale in which
price of the commodity to be traded is stipulated between seller
and the buyer without any reference to the price paid or cost incurred
by the former. |
23 |
In Ijara the corpus of leased asset remains
in the ownership of the lessor and only its usufruct is transferred
to the lessee. |
24 |
Any thing which cannot be used without consuming
the same can be leased out like money, edibles, fuel, etc. |
25 |
Only such assets which are owned by the lessor
can be leased out. |
26 |
Until such time that assets to be leased are
delivered to the lessee, lease rentals do not become due and payable.
|
27 |
The insurance of the leased asset should be
in the name of lessee and the cost of such insurance borne by him.
|
28 |
A lease can be terminated before expiry of
the term of the lease but only with the mutual consent of the parties.
|
29 |
The amount of rental must be agreed in advance
in an unambiguous manner either for the full term of the lease or
for a specific period in absolute terms. |
30 |
Assignment of only the lease rentals is permissible
except at par value. |
31 |
Contract of lease will be considered terminated
if the leased asset ceases to give the service for which it was
rented. |
32 |
In Salam the buyer shall pay the price in
full to the seller at the time of effecting the sale. |
33 |
It is necessary that the commodity which is
the subject of Salam contract is normally expected to be available
at the time of delivery. |
34 |
In Musharaka Profits shall be distributed in
the proportion mutually agreed in the contract. |
35 |
In Istisna contract the agreed price may be
paid in lump sum or in installments in the matter mutually agreed
by the parties. |
36 |
In Istisna transactions the buyer can, before
taking possession (actual or constructive) of the goods sell or
transfer ownership in the goods to any other person. |
37 |
It is not allowed to fix a lump sum amount
for any of the partners, or any rate of profit tied up with his
capital. |
38 |
A management fee can be paid to the partner
managing the Musharaka. |
39 |
In Mudarabah Financial losses of the Mudarabah
shall be borne solely by the Rabbulmal. |
40 |
In Diminishing Musharaka expenses incidental
to ownership should be borne by the joint owners in the proportion
of their ownership. |
41 |
Diminishing Musharaka can be created only in
fixed assets. |
42 |
Proportionate share of each partner in Musharaka
not necessary to be fully known and disclosed. |
43 |
In Musharaka loss, if any, should be borne
by the partner in the proportion of their investment. |
44 |
In Diminishing Musharaka the monthly payment
would go on increasing with purchase of ownership units/shares by
the Client. |
45 |
In Diminishing Musharaka monthly payment agreement
should be separate from the Musharaka agreement. |
46 |
The principle of Ijara with diminishing Musharaka
can not be used for home-buying services. |
47 |
The majority of the jurists are of the view
that if the earlier payment is conditioned with discount or rebate,
it is not permissible in Shariah. |
48 |
In Islamic law it is permissible to penalize
a debtor who is financially sound but delays payment of debt without
any genuine reason. |
49 |
It is permissible to allow the debtor a rebate
for earlier payment of the debt. |
50 |
In Islamic perspective money is also treated
as a commodity. |
| Q.2 |
Please write the alphabate
of selected choice in the answer column: (20) |
1 |
According to Islamic Shariah, Ijma is defined
as:
A) Main Source of Shariah
B) Consensus of majority jurists
C) Reasoning by Analogy D)
None of the above
|
2 |
According to Islamic Shariah, Riba is defined
as:
A) Banking Interest B)
Any benefit from any type of Loan
C) Income from unlawful contracts D)
None of the above |
3 |
Which of the following is not a condition for
Istisna?
A) Manufacturer is
responsible for Procurement of raw material
B) Specification of type of Asset
to be manufactured
C) Advance Payment of price in full
D) None of the above |
4 |
If Khlaid sells his car to Ahmed on a discounted
price on the condition that Ahmed would allow him to use the car
on every weekend, it would be a
A) Valid Sale B)
Invalid Sale
C) Valid Sale, if Ahmed agrees without any pressure
D) None of the above |
5 |
Choose the condition below that is not necessary
for execution of 2nd Contract in a Parallel Istisna arrangement:
A) The asset
is in physical/ constructive possession of the seller
B) Two separate contracts
C) Completely independent contracts
D) None of the above |
6 |
In a Murabahah Contract, If the customer fails
to purchase the asset as per the promise, after the Islamic Bank
has purchased the same then
A) The Bank has no
right to claim any amount from the customer, it should try to black
list the customer in Banking
Industry.
B) The Bank should sell the asset
in the market and can claim losses, if any, and liquidity damages
from the customer.
C) The Bank should sell the asset in the
market and can claim actual monetary losses, if any, from the customer.
D) None of the above |
7 |
One of the following Islamic mode is usually
securitized while issuing Government backed Islamic securities (Sukuks).
A) Istisna B)
Ijarah
C) Murabahah D)
None of the above
|
8 |
Murabahah can be used in following situations
by an auto manufacturing concern (e.g. Suzuki)
A) Payment of salaries to employees B)
Payment of Electricity Bills
C) Purchase of Auto Parts D)
None of the above |
9 |
In an Ijarah transaction by an Islamic Bank,
rentals should be charged
A) After payment of price to the supplier of the
asset B) After
delivery of the Asset to the Customer
C) After the asset is manufactured by the supplier D)
None of the above |
10 |
Following cannot be sold on the basis of Istisna
A) Toyota Corolla B)
House C)
A Painting
D) None of the above |
11 |
When does the Istisna contract begin?
A) As soon as a security is deposited B)
Once the contract is signed
C) After purchase of raw material by manufacturer
D) None of the above
|
12 |
According to Islamic Shariah, following condition
is not allowed in an Ijarah contract:
A) Lessor (Financial Institution)
can increase rental any time if its cost increases
B) Lessor (Financial Institution) should
restrict the usage of asset in certain circumstances
C) Lessor (Financial Institution) is responsible
for any ownership related cost.
D) None of the above |
13 |
According to Shariah, if the asset is not specifically
identified in an Ijarah contract:
A) It will be an invalid Ijarah B)
It will be a valid Ijarah
C) Invalid, if the Customer defaults D)
None of the above
|
14 |
Salam can be used for:
A) Purchase of Fruits from traders B)
Installing an air conditioning plant in a factory
C) Real Estate business D)
None of the above |
15 |
If the Leased Asset is destroyed due to natural
calamity the Islamic Bank (Lessor)
A) Is allowed
charge rentals until the Takaful claim is settled
B) Is not allowed to charge
any further rentals
C) Can charge if agreed at the time
of Ijarah Agreement
D) None of the above |
16 |
If the cost of Takaful/ insurance cost is increased,
an Islamic Bank (Lessor) can increase rentals immediately:
A) Permissible as
Bank is the owner of the asset
B) Impermissible to increase in any
circumstances
C) Permissible if a mechnsim is agreed
at the time of Ijarah Agreement
D) None of the above |
17 |
In an Istisna transaction, Contract can be terminated
unilaterally
A) Any time after the execution of the Contract
B)
Before the purchase of raw material by the seller
C) Can be terminated only through mutual consent
D) None of the above |
18 |
After completion of Ijarah transaction, the promise
to sale the asset to the Lessee
A) Should be unilateral,
and binding on one party only.
B) Should be bilateral, and binding
on both parties.
C) Should be unilateral, and binding
on both parties.
D) None of the above |
19 |
Status of KIBOR based floating rate Islamic Housing
Finance Agreements according to Shariah:
A) Impermissible, as Interest
rate is used as a benchmark
B) Permissible but need development of an
other benchmarks instead of using Interest rate as benchmark
C) Impermissible, as it is necessary to
market rentals should is used as a benchmark
D) None of the above |
20 |
Diminishing Musharakah for Housing Finance is
primarily done under the following type of Shirkah
A) Shirkat-ul-Aqd B)
Shirkat-ul-Milk C)
Shirkat-ul-Wujooh D)
None of the above |