Islamic banking operates under the principles of:
A) Profit and loss sharing
B) Fixed interest rates
C) Speculative investments
D) Unsecured lending
Which of the following is strictly prohibited in Islamic banking?
A) Profit-sharing
B) Interest (Riba)
C) Asset-backed financing
D) Partnership agreements
Conventional banks generate profit mainly through:
A) Interest-based lending
B) Equity financing
C) Zakat collection
D) Islamic contracts
Islamic banks use which contract for profit-sharing?
A) Murabaha
B) Mudaraba
C) Tawarruq
D) Sukuk
Which Islamic financial instrument is equivalent to a bond in conventional banking?
A) Sukuk
B) Wadiah
C) Riba
D) Qard Hasan
Conventional banks offer loans primarily based on:
A) Profit and risk-sharing
B) Fixed interest rates
C) Asset-based financing
D) Ethical considerations
A key difference between Islamic and conventional banking is:
A) Islamic banking prohibits interest (Riba)
B) Conventional banking does not allow loans
C) Islamic banking does not provide mortgages
D) Conventional banking follows religious principles
Which of the following is NOT an Islamic banking contract?
A) Murabaha
B) Ijara
C) Tawarruq
D) LIBOR
Islamic banking is primarily based on:
A) Interest-free transactions
B) Short-term lending
C) Speculative trading
D) High-risk investments
A contract in which a bank purchases an asset and sells it to a customer at a markup is called:
A) Mudaraba
B) Murabaha
C) Qard Hasan
D) Ijara
Which contract is used in Islamic banking for leasing assets?
A) Ijara
B) Wakalah
C) Sukuk
D) Mudaraba
Islamic banking follows the principles of:
A) Capitalism
B) Social justice and risk-sharing
C) High-interest loans
D) Speculative investments
Islamic banking prohibits investments in industries related to:
A) Halal food production
B) Alcohol and gambling
C) Real estate development
D) Agriculture
Which organization provides guidelines for Islamic banking?
A) IMF
B) AAOIFI
C) World Bank
D) SEC
Islamic banking avoids:
A) Equity financing
B) Risk-sharing
C) Unethical investments
D) Asset-backed financing
A contract in which two or more parties pool their capital and share profits and losses is called:
A) Mudaraba
B) Musharaka
C) Murabaha
D) Wakalah
The primary objective of Islamic banking is to:
A) Maximize interest earnings
B) Ensure profit-sharing and ethical financing
C) Engage in speculative trading
D) Avoid financial transactions
Which of the following is NOT a characteristic of conventional banking?
A) Interest-based transactions
B) Risk-free profits for banks
C) Profit and loss sharing
D) Unsecured lending
Islamic banks operate under the principles of:
A) Debt financing
B) Ethical and Shariah-compliant finance
C) Speculative stock trading
D) High-interest loans
What is the term for an interest-free loan in Islamic banking?
A) Mudaraba
B) Qard Hasan
C) Murabaha
D) Sukuk
Which of the following is a financing method used in Islamic banking?
A) LIBOR-based loans
B) Interest rate swaps
C) Profit-sharing agreements
D) Hedge fund trading
Islamic banking promotes:
A) High-risk speculation
B) Ethical investment and fairness
C) Short-term lending at fixed rates
D) Government-controlled financing
Conventional banks create money mainly through:
A) Profit-sharing
B) Fractional reserve banking
C) Asset-backed lending
D) Government subsidies
A fundamental rule in Islamic banking is that financial transactions must be:
A) Based on uncertainty
B) Asset-backed and transparent
C) Interest-driven
D) Speculative
The prohibition of Riba in Islamic banking is based on:
A) Market volatility
B) Shariah law
C) Western financial theories
D) Government policies
Which is NOT an Islamic finance contract?
A) Mudaraba
B) Tawarruq
C) LIBOR
D) Musharaka
Islamic finance discourages:
A) Interest-based transactions
B) Profit-sharing agreements
C) Real estate investments
D) Trade-based financing
Which financing method in Islamic banking involves cost-plus pricing?
A) Mudaraba
B) Ijara
C) Murabaha
D) Musharaka
The Islamic equivalent of venture capital funding is:
A) Qard Hasan
B) Sukuk
C) Musharaka
D) Tawarruq
A major difference between Islamic and conventional banks is that Islamic banks:
A) Charge higher interest rates
B) Share profits and risks with clients
C) Only finance small businesses
D) Do not offer financing options
