Question 1

First Islamic bank was recognized in

Accepted Answer

The first Islamic bank, Dubai Islamic Bank, was established in 1975 in the United Arab Emirates, not in the options provided. However, among the given options, Malaysia has been a pioneer in Islamic banking among non-Middle Eastern countries, with its first Islamic bank, Bank Islam Malaysia Berhad, established in 1983.

Question 2

A joint project or partnership formation with profit/loss contribution implications that is used in Islamic finance as an alternative of interest-bearing loans is

Accepted Answer

C

Question 3

Profit is based on accord of parties, but loss is all time issue to proportion of

Accepted Answer

In the context of a partnership or joint venture, profit distribution can be agreed upon by the parties involved, but losses are typically distributed in proportion to the capital or investment each party has contributed, hence both A and B are correct.

Question 4

A number of Islamic banks were formed to provide to this particular banking market in late

Accepted Answer

Islamic banking, as a formal sector, gained prominence and saw the establishment of dedicated Islamic banks in the late 20th century, responding to the demand for banking services that comply with Islamic law (Sharia).

Question 5

Working capital financing in Musharika is

Accepted Answer

Working capital financing in Musharika is considered asset side financing because it involves the financing of the assets or operations of the business rather than contributing to its liabilities.

Question 6

How much etc in Musharika is related to

Accepted Answer

The correct answer is D because both quantified and specified are related to Musharika.

Question 7

Products of first type may be given to Musharika in capital while second kind of products cannot be a part of capital observation of

Accepted Answer

The answer of Products of first type may be given...

Question 8

Islamic banking structure is based on

Accepted Answer

Islamic banking is based on the principle of risk sharing, in contrast to the interest-based transactions prohibited in Islam.

Question 9

An investor and his customer contribute either in shared possession of an assets or equipment, or in a combined commercial venture is

Accepted Answer

The answer of An investor and his customer contribute either...

Question 10

Qur'an forbids

Accepted Answer

The Qur'an forbids gambling, interest sharing (usury), and gharar (uncertainty or deception in contracts), making all of the provided options correct.

Question 11

A pioneering attempt, in Shariah compliant investments banking was undertaken in 1963 in

Accepted Answer

The pioneering attempt in Shariah-compliant investments banking was undertaken in 1963 in Egypt with the establishment of the Mit Ghamr Savings Bank, which operated without charging or paying interest, in compliance with Islamic banking principles.

Question 12

Giving share of investor to customer on lease is the

Accepted Answer

Diminishing Musharika involves a partnership where the investor's share is gradually transferred to the customer, typically in a lease-to-own arrangement.

Question 13

The term IDB stands for

Accepted Answer

The term IDB stands for Islamic Development Bank, which is a multilateral development finance institution that is focused on Islamic finance located in Jeddah, Saudi Arabia.

Quiz 2: Islamic Banking and Finance: Part B