V1_____Quiz 1_Ch-3_BS_A&F--------Roll No: __________________

Circle the right Choice.

1. __________________is an Islamic finance product regarded as the most viable tool for
financing agriculture.
A. mudarabah
B. salam
C. diminishing partnership
D. Bai muajjal

2. Salam contract is used in Islamic commercial transactions:

A. to create employment opportunities
B. to meet the financial needs of small farmers who require liquidity to cultivate their land
and grow their crops until harvest time
C. to provide working capital for the entrepreneurs
D. all of the above

3. The profit realised by the Islamic bank as a result of entering into salam contract is
A. a predetermined percentage of the total value of the crops sold in the open market:
B. the difference between the selling price at the open market and the cost price of the crops
as concluded with the farmer
C. administrative fees and service charges paid by the farmers
D. all of the above

4. The two types of Mudarabah contractual arrangements are:

A. mudarabah al-Mutlaqah and Mudarabah al-Muqayyadah
B. mudarabah al – Mutazayedah and Mudarabah al-Mutanaqesah
C. muradarah al-Mutlaqah and Mudarabah al-Mutazayedah
D. none of the above

5. Bai Muajjal-Murabahah mode of microfinance is more appropriate for:

A. financing agriculture
B. combating unemployment
C. providing working capital
D. financing real estate contracts