Multiple Choice Questions

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1. Based on the Fiqh rules on Ijarah, which of the statements below is FALSE?

1. t's the duty of the lessor to maintain the leased asset to retain its benefit that is used by the lessee
2. The lessee must act as a trustee of the lessor in treating the leased property properly
3. A leased asset may be subleased to a third party without permission from the lessor unless stated otherwise
4. The lessee may use the asset as he wishes with restriction with condition that he has paid for the rent

2. A contract where disbursements are done in stages based on the the progress of the work.

1. Salam
2. Ushr
3. Istisnaq
4. Ijarah

3. Who bears the loss in a wakalah?

1. Principal
2. Wakeel
3. Both together
4. None of the above.

4. If depositors want capital protection, which mode can be used to accept their deposits?

1. Mudarabah
2. Musharakah
3. Amanah or qard
4. None of the above.

5. When is title of the asset transferred in Ijarah to the client?

1. At the start of lease
2. At the end of lease automatically
3. At the end of lease if client purchases and bank sells the asset to client.
4. None of the above

6. In which contract of Islamic modes of financing, it is mandatory to disclose the cost to the client?

1. Murabaha
2. Musawamah
3. Ijarah
4. None of the above

7. In import Murabaha, usually the bank is the:

1. Buyer of foreign exporter; seller to local client
2. Buyer of local client; seller to exporter
3. Just an agent for client
4. None of the above

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8. The followings are the benefits of sukuk EXCEPT

1. It provides avenue to source for large funding.
2. It can be traded in the secondary market for liquidity need.
3. It provides source of funding for corporate and government.
4. It provides risk free investment vehicle to the investors.

9. Rabb-ul-Maal refers to:

1. Business operator
2. All the partners
3. capital investor
4. capital investment

10. The saving account concept in Islamic bank is in the form of ___________.

A. the depositor is the lender

B. the bank is the borrower

C. the depositor is fund owner and bank is fund user

D. safe-keeping.