Essentials of Islamic Finance

Final Quiz Fall 2012 Answers

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. Financial contract under money and ability is known as Pre- Islamic Mode born in Rome, Italy for contract under ability finance Financing for useable goods in known as Monitory contribution to structure the capital base of transaction Assets acquire under Hire and Purchase using financial assistance in Venture Financing under equity participation in mode known as Useable goods are finance under mode known as Commodity cannot be the capital only paper currency can be the capita It is not capital base contract and funds use for purchase of commodity, Person who have the ability to manage the trade transaction is called as Useable goods finance by Rab-al-Maal is use by one who is called Two person brings their money and efforts for transaction are known as To finance trade under Imported Merchandise Financial Instrument use for structure capital of transaction Transaction under differed sale Transaction under advance against supply Financing for Irrigation Financing for sharecropping Animal Farming under financing mode is In case of loss it is shared exactly in the proportion of capital in contract In financing mode finance cannot be disburse directly to user Non debt financial instrument use as proof of investment Financing amount is determine according to gross income Entrepreneur must be good in reputation, experience and ability for It is a trading instrument without excess to the face value Disposal of total equity is the end of financial transaction Purchase issue LPO and seller issue GRN Capital must be given in full trust and losses are subject to check Financial Instrument tradable and non tradable in secondary market Selling expenses are taken as the cost of the goods Affordability amount minus installment is monthly rental in financing Cost price less sales price is GP minus Arboon is net profit in financing Net Profit is shared on pre agreed ratio after deducting management fee Management Fee + Profit = Principle Proceed= GP- Cost= NP /ROI Financing for the procurement of raw material Financing for capital assets Venture Financing or Equity Participation under Modaraba Commenda Ijarah Equity Ijarah Musharka Ijarah Modaraba Morabaha Morahib Sarif Musharka Morabaha Sukuk Bi Muajjal Bi Salam Mussaqa Muzara Hawania Musharka Ijarah Sukuk Ijarah Modaraba Sukuk Musharka Morabaha Modaraba Sukuk Morabaha Ijarah Morabaha Modaraba Earning Profit Morabaha Ijarah Musharka

Select the Proper terms for the following explanations

39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. Transfer of funds from point of origin to point of destination Demand draft under Islamic finance method is called In Islamic finance term use for collateralization Equity participation in trade related financial transaction by trader Jabriyyah contract Al Mufawadah Contract under Al Wujuh contract in Al Abdan contract by All Inan contract with Riba Al Garrar is an act under Qimar is the form of Reputation, Skill, Ability, Experience, Knowledge in a partner Known as Order, Notification and directives under Islamic financial law House of treasury in Islamic State Partners in money and efforts under financial contract Participator by his or her trading ability and trade management Ruqa- minor- gambling- Farman- Musharik- fraud- authority- skillgoodwill Morahib- By force- Rehen- Arboon- Hawala- MinorBaitul Mall Hawala Ruqa Rehen Arboon By force Authority Good Will Skills Minor Fraud Gambling Modarib Farman Baitul Maal Musharik Morahib

Select the right product from the transaction

55. 56. 57. 58. 59. 60. Globe Inc decided to include Capital Assets through financing Capital of Aero Group structured by financial instrument Raw Material procured under payment term By Muajjal It was decided to avail go into expansion through venture financing Mr. Ahmed enter into financial agreement through reputation & ability Mr. Khan bought shareholding in a company under by back term Ijarah Sukuk Morabaha Musharka Modaraba Musharka