Chapter no 14.

Islamic banking system

Choose the best possible answer:

1. Shariah prohibits payment and collection of:

 Demand drafts
 Pay orders
 Interest (Riba)
 Online transfer
2. Money begets money, without being exchanged for goods and services, it is called:
 Leasing
 Islamic banking
 Capital finance
 Riba
3. Islamic banking refers to a system of banking which is consistent with:
 Shariah (Islamic Law)
 Commercial banks
 Mark up financing
 Council
4. Investment related modes of financing is:
 Ijara
 Bai muajjal
 Qard-e- hasna
 Musharka
5. Trade related modes of financing is:
 Mudaraba
 Murabaha
 Investment auctioning
 Rent sharing
6. Investment auctioning relates to:
 Trade related mode of finance
 Investment related mode of finance
 Finance by lending
 Ptc- debenture
7. Equity participation not relates to:
 mudaraba
 musarka
 murabaha
 trade related mode of finance
8. ijara-wa-iqtina means:
 Buy back agreement
 Leasing
 Development financing
 Hire purchase
9. Mark up financing also known as
 Bai muajjal
 Ijara
 Ijara wa iqatina
 Qard –e-hasna
10. Musharka means:
 Sale on reciprocally agreed profit
 Provides time and expertise
 A joint venture on profit sharing basis
 Long term financing
11. Murabaha means:
 Provides time and expertise
 Sale on reciprocally agreed profit
 Long term financing
 A joint venture on profit sharing basis
12. According to banking companies ordinance 1962,PTC can be issued to:
 Public scheduled banks and financial institutions
 National bank of Pakistan
 Asian development bank
 World bank
13. Maximum duration for the participation term certificate (PTC) is:
 15 years
 10 years
 5 years
 2 years
14. Rent sharing is Islamic mode of financing specially suited for:
 Construction related business
 Specialized financial institutions
 Only central bank
 Government
15. Qard-e-hasna relates with:
 Equity participation
 Finance by lending
 PTC
 Development financing
16. Equity participation means, participating in equity, sharing risks and rewards of ownership of
any:
 Liability
 Asset
 Expense
 Revenue
17. The legal framework of pakistan financial and corporate system was modified on _____to allow
issuance of PTC, a new interest free mode of commercial financing:
 June 26,1980
 June 27,1980
 July 26,1980
 July27,1980
18. State bank of Pakistan issued directives for elimination of interest from country in:
 June 1984
 June 1985
 June 1986
 June 1987
19. The commission for islamization of economy in Pakistan submitted a report in:
 Feb 1991
 Jan 1991
 Jan 1992
 Jan 1993
20. State bank of Pakistan issued first lslamic banking license to:
 Bank al-islami
 Dubai Islamic bank Pakistan ltd
 Al-baraka Islamic bank
 Meezan bank limited
21. The council of Islamic ideology (CII) was established in :
 1960
 1961
 1962
 1963
22. CII presented its report on elimination of interest
 1980
 1982
 1984
 1985
Answer:
1. Interest (riba)
2. Riba
3. Shariah (Islamic law)
4. Musharaka
5. Investment auction
6. Trade related mode of finance
7. Trade related mode of finance
8. Hire purchase
9. Bai muajjal
10. A joint venture on profit sharing basis
11. Sale on reciprocally agreed profit
12. Public scheduled bank and financial institution
13. 10 years
14. Construction related business
15. Finance by lending
16. Asset
17. June 26 1980
18. June 1984
19. Jan 1992
20. Meezan bank limited
21. 1962
22. 1980