Islamic Finance and Investment

Islamic Finance


NAME :

CLASS :

DATE :

1. When a contract of Musharakah is executed, the conditions of agency are automatically presumed to be in existence in

the contract.

A False B True


2. Salam can take place wher both items of exchange are identical

A False B True


3. Musharakah cannot be concluded with non-muslim

A False B True


4. Some jurists allow delayed payment of the price in salam up to 3 days

A False B True


5. In Istisna'a, it is necessary that the price is paid full in advance

A False B True


6. Istisna'a is _______ as long as the manufacturer does not start work on the subject matter.

A Non binding B Binding


7. In Forward sales, goods will remain at the risk of _______ before delivery

A Seller B Buyer


8. In Mudarabah, Rabulmal cannot specify di􀀂erent periods to state that profits earned in a specific period will be his and

that of another period will be for the Mudarib.


A False B True

9. When salam contract is cancelled, the buyer will be refunded ______.

A The advanced price with decrease B The full advanced price


10. Diminishing Musharakah in financing fixed assets involves two contracts: partnership, and lease.

A True B False


11. In istisna'a, it is possible to adjust the price with mutual consent in some circumstances.

A False B True


12. In Mudarabah, losses are entirely borne by Rabulmal even in the case of misconduct by the Mudarib.

A False B True


13. if material is supplied by the purchaser and the manufacturer is required to use his labor only

A This contract is Istisna'a B This contract is Ujrah


14. With diminishing Musharakah in trade, the price of each share units sold by the financier partner is not fixed but rather

based on market valuation at the time of the purchase of each unit.

A False B True


Answer Key

1. b 2. a 3. a 4. b

5. a 6. a 7. a 8. b

9. b 10. b 11. b 12. a

13. b 14. b



Quiz 2 Islamic Investment

10 Questions

NAME :

CLASS :

DATE :

1. A stock index is an index that measures a stock market

A False B True


2. ETF can be traded once a day

A True B False


3. Two tier quantitative approach in screening process involves 5% and 15% benchmark

A False B True


4. Equity and sukuk are traded in Islamic capital market

A True B False


5. In cleansing strategy, we should sell the stock immediately if the current value (RM0.80) less than investment cost (RM1.00)

A True B False

6. REITs allow anyone to invest in portfolios of real estate through the purchase of company stock/mutual fund/ (ETF

A True B False


7. Common stock represents shares of ownership in a corporation

A False B True


8. Islamic capital market involves long term financial market

A True B False


9. Cash and debt (interest based) should not exceed 33% of company total asset in screening process

A False B True


10. Shariah Advisory Council responsible in review and endorse shariah compliant securities

A True B False


Answer Key

1. b 2. b 3. a 4. a

5. b 6. a 7. b 8. a

9. b 10. a


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