Test Your Islamic Finance Knowledge With The Auscif’s Quiz

Approved & Edited by ProProfs Editorial Team
The editorial team at ProProfs Quizzes consists of a select group of subject experts, trivia writers, and quiz masters who have authored over 10,000 quizzes taken by more than 100 million users. This team includes our in-house seasoned quiz moderators and subject matter experts. Our editorial experts, spread across the world, are rigorously trained using our comprehensive guidelines to ensure that you receive the highest quality quizzes.
Learn about Our Editorial Process
| By Almircolan
A
Almircolan
Community Contributor
Quizzes Created: 2 | Total Attempts: 7,294
Questions: 15 | Attempts: 6,742

SettingsSettingsSettings
Test Your Islamic Finance Knowledge With The Auscifs Quiz - Quiz

Islamic finance quiz consists of true/false questions. You must answer each question before you go to the next one. All answers are final. You will not be able to go back or skip questions.


Questions and Answers
  • 1. 

    One of the core aims or objectives (maqasid) of the Shariah is the preservation of Wealth (Maal).

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The preservation of wealth (Maal) is indeed one of the core aims or objectives (maqasid) of the Shariah. This means that Islamic law seeks to protect and safeguard people's wealth, ensuring that it is not unjustly taken or wasted. This is in line with the principles of fairness and justice in Islam, as wealth is considered a blessing from God and should be used and distributed in a responsible and ethical manner. Therefore, the statement "True" accurately reflects this aspect of Shariah.

    Rate this question:

  • 2. 

    Subject matter in a contract can not be anything that is not tangible. (Eg: usufruct (benefit from someone else's property) which is commonly found in a lease agreements)

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    The statement is false because the subject matter in a contract can include both tangible and intangible things. Usufruct, which is mentioned as an example, is an intangible right that can be included in a lease agreement. Therefore, the subject matter in a contract is not limited to tangible things.

    Rate this question:

  • 3. 

    It is permissible to sell a commodity before it comes under our control or we take (actual or constructive) possession of it. (Excluding Salam and Istisna arrangements)

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    According to the statement, it is not permissible to sell a commodity before it comes under our control or we take possession of it. This means that one cannot sell something that they do not have ownership or control over. Therefore, the correct answer is False.

    Rate this question:

  • 4. 

    Offer and acceptance are non-essential attributes of the contract and if they are missing then the contract can not be described as Void (batil).

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Offer and acceptance are essential elements of a contract. Without these elements, a contract cannot be formed. If either the offer or acceptance is missing, the contract would be considered voidable or void depending on the circumstances.

    Rate this question:

  • 5. 

    It is permissible to have contract that combines contracts of sale and lease if they refer to the same asset (e.g. Hire Purchase contracts with e.g. a lease for 3 years and sale at 30% at the end of the lease period).

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    It is not permissible to have a contract that combines contracts of sale and lease, even if they refer to the same asset. The reason for this is that a sale contract and a lease contract are two distinct legal agreements with different rights and obligations for the parties involved. Combining them would create confusion and potentially lead to legal disputes. Therefore, the statement is false.

    Rate this question:

  • 6. 

    According to shari'ah, anything that has economic value is considered wealth.

    • A.

      False

    • B.

      True

    Correct Answer
    A. False
    Explanation
    According to shari'ah, not everything that has economic value is considered wealth. Shari'ah defines wealth as something that is tangible and has a specific value, such as money, gold, or property. However, intangible things like knowledge, skills, or services are not considered wealth in shari'ah. Therefore, the statement "anything that has economic value is considered wealth" is false according to shari'ah.

    Rate this question:

  • 7. 

    Riba al-Fadl refers to a delay in the settlement of one or both counter-values.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Riba al-Fadl refers to the prohibition of unequal exchange of goods of the same type but different quantities. It does not refer to a delay in the settlement of counter-values. Therefore, the correct answer is False.

    Rate this question:

  • 8. 

    Exchanging US$105 with AUD$100 on the spot (hand to hand, without delay) is permissible.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Exchanging US$105 with AUD$100 on the spot is permissible because the exchange rate between the US dollar and the Australian dollar is favorable. This means that the US dollar has a higher value compared to the Australian dollar, allowing for a higher exchange rate. Therefore, exchanging US$105 for AUD$100 would result in a favorable exchange rate for the individual.

    Rate this question:

  • 9. 

    Buying a house for eg. $450,000 (to be paid in instalments over 5 years) is a permissible arrangement.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Buying a house for $450,000 and paying for it in instalments over 5 years is a permissible arrangement. This means that it is allowed or acceptable to purchase a house in this manner.

    Rate this question:

  • 10. 

    Late fees are permissible as long as they are mutually agreed to at the start of a contract.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Late fees are not permissible as long as they are mutually agreed to at the start of a contract. Late fees must be reasonable and in line with applicable laws and regulations. If a late fee is deemed excessive or unfair, it may be considered unenforceable. Therefore, the statement is false.

    Rate this question:

  • 11. 

    Gharar refers to uncertainty and deception (amongst other things).

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Gharar is a term used in Islamic finance to refer to uncertainty or ambiguity in a contract. It is considered undesirable because it can lead to deception or unfairness. Therefore, the statement that Gharar refers to uncertainty and deception is true.

    Rate this question:

  • 12. 

    In Musharaka (joint venture), the profit ratio is fixed according to capital contribution, while loss ratio can be negotiated, but, must be fixed at the start.

    • A.

      False

    • B.

      True

    Correct Answer
    A. False
    Explanation
    In a Musharaka or joint venture agreement, both profit and loss ratios are typically negotiated and agreed upon by the parties involved. While the profit ratio may indeed be based on the capital contributions of each partner, the loss ratio is not necessarily fixed at the start and can also be subject to negotiation and agreement. Therefore, the statement that the loss ratio must be fixed at the start is false.

    Rate this question:

  • 13. 

    In musharaka, partner who invest eg. $50,000 (or 10% of total investment capital) has right to specify from the beginning that his share of profit will be $5,000 per year (which equals to 10% of his initial contribution).

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    In musharaka, partners who invest in the business have an equal right to share in the profits and losses of the venture. They do not have the right to specify a fixed amount of profit from the beginning. Instead, the profit distribution is based on their respective contributions to the total investment capital. Therefore, the statement that a partner can specify a fixed amount of profit is false.

    Rate this question:

  • 14. 

    The result of a sale transaction is instant and results in an absolute transfer of the (asset) ownership.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    In a sale transaction, the result is instant and leads to the absolute transfer of ownership of the asset. This means that once the sale is completed, the buyer becomes the rightful owner of the asset, and the seller no longer has any claim or control over it. There are no conditions or contingencies attached to the transfer, making it a definitive and final change in ownership. Therefore, the statement "True" accurately describes the outcome of a sale transaction.

    Rate this question:

  • 15. 

    Buying shares (stock) on a short term price fluctuations is considered speculation (rather than investment) and thus is a prohibited trading practice.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Buying shares on short-term price fluctuations is considered speculation because it involves making investment decisions based on short-term market trends and price movements, rather than on the long-term fundamental value of the company. Speculation is a higher-risk trading practice compared to long-term investing, as it relies on predicting short-term market movements, which can be unpredictable and volatile. Therefore, buying shares for short-term price fluctuations is generally not considered a sound investment strategy and is often prohibited by trading regulations.

    Rate this question:

Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Aug 18, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Jan 01, 2014
    Quiz Created by
    Almircolan
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.