4. The Transaction in which cost and profit are known is referred as;
a) Musharakah
b) Murabaha
c) Ijarah
d) Salam
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8. The sale of a priced commodity for another priced commodity is referred as;
a) Bay
b) Barter
c) Sarf
d) Sale
9. In order to eliminate the element of “uncertainty” in the Takaful contract, which one of the
following concept is incorporated;
a) Taawun
b) Tabarru
c) Tawakul
d) Tameen
10. A contract between the owner of funds and the Bank for safe keeping purposes is referred
as;
a) Muawaada
b) Wadiya
c) Waqf
d) Wasf
11. The transfer of the debt from the transferor to the payer is known as;
a) Wakala
b) Kafala
c) Hawala
d) Musawamah
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13. Bai Makrooh is valid but not liked due to certain conditions except;
a) Sale after Juma Azan
b) Sale after hoarding
c) Sale before Salaat
d) Intervention of third party.
17. Under Islamic jurisprudence, _________means a join enterprise formed for conducting some
business;
a) Murabaha
b) Musawama
c) Mudaraba
d) Musharaka
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25. If the ratio is not determined in Musharakah before the contract, it becomes
a) Invalid
b) Valid
c) Fasid
d) Non existent
26. In case of dispute in Musharakah for liquidation of assets, distribution of assets will be
a) Required
b) Mandatory
c) Preferred
d) Depends on partners
27. ‘A’ promises to sell his car to ‘B’ within the next 3 months for GBP 50,00; this is a?
a) Wadiah
b) Muahida
c) Aqd
d) Wa’da
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31. Which one of the following comes into existence as a result of any other contract or
transaction?
a) Daman
b) Qard
c) Dayn
d) Bay
32. Agreement by which a debtor is freed from a debt by another becoming responsible for it is
referred as ;
a) Kafala
b) Hawala
c) Hiba
d) Ijab
34. Price of the commodity to be traded is bargained between seller and the purchaser without
any reference to the price paid or cost incurred by the former is referred as;
a) Musharakha
b) Murabaha
c) Mushawama
d) Mudarabah
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36. Which one of the following is NOT the part of Riba Al-fadl;
a) Date
b) Silver
c) Vegetable
d) Wheat
38. The kind of sale in which payment is spot while the delivery of the good is deferred is called;
a) Istisna
b) Salam
c) Istijrar
d) Ijarah
39. Which one of the Following is NOT the element of Valid Sale;
a) Price
b) Delivery
c) Variety
d) Contracting Parties
40. Anything that is in the possession of the person, who is not the owner of it, is called;
a) Amanah
b) Amin
c) Amal
d) Al-Wadiah
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46. The subject on which transaction is based, is always a thing which needs to be manufactured
is called;
a) Istisna
b) Istijrar
c) Ijarah
d) Murabah
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48. Effort of the Jurist to derive the Law on as issue on the basis of evidence found in the
sources, is called
a) Ijmah
b) Hukum
c) Ijtihad
d) Iqala
49. 66% of all the transactions in the Islamic Banks are executed through
a) Musharakah
b) Mudarabah
c) Murabaha
d) Ijarah
50. Each partner has the right to terminate the _____________ at any time after giving prior
notice.
a) Murabaha
b) Dimishing Musharaka
c) Musharaka
d) Ijarah
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1. If there is mutual consent between two parties, they are permitted, under Islamic Shariah,
to enter into any transaction among themselves.
3. Islamic Shariah does not permit one to do a sale transaction contingent on a future date.
12. The traditional and contemporary Muslim scholars are unanimous on the point that bai-al-
dain with discount is not allowed in Shariah.
13. The prohibition of bai-al-dain is not logical consequence of the prohibition of riba.
14. Hawala is legitimate and independent contract made of courtesy and is also a contract of
sale.
16. In a pledge, Ownership remains with the pledgee, but the pledger has the exclusive
possession of property until the advance is repaid in full.
17. In Istisna. Price must not be fixed, but need not to be paid in advance.
20. All premium holders in Takaful will not participate in pofit and loss.
21. Hawala benefits the debitor and gives relief to the creditor.
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30. Interest paid on loans taken for productive & profitable purpose is called Surfi Sood.
31. Mark-up is the difference between the cost & selling price
35. Qimar is that event in which there is a possibility of total loss to one party.
40. In Musharaka, the parties may be paid a provisional profit at any rate which will be subject
to adjustment from final profit distribution.
41. The ratio of profit distribution must be agreed at the time of distribution of profit in
Mudarabah and Musharakah agreements.
43. Termination of Musharakah with one partner means termination with other partners.
44. If assets are not liquid their valuation must be done to distribute shares.
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49. Sleeping partner can get profit more than of its investment share with the mutual
agreement of all parties.
50. Lease and sale agreement should not be separate and non-contingent.
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