Entry Quiz

1. Select the right answer for the principles of an Islamic financial system
from definitions below Wealth
Use of natural resources to produce goods and services (X)
Responsibility of sharing
Utilizing all resources created by Allâh (swt)
Foundation of the relationship between Allâh (swt) and others (X)

What are the different key roles of participants in a financial system?Select

all that apply
Facilitator
Mediator
Intermediaries
Teller

Islamic banks can charge interest on loans.

True
False

Trade in stocks dealing with alcohol is not permissible in Islamic financial

system.
True
False

Efficiency has primacy in conventional finance compared with ethics.

True
False
All business decisions involving speculation are forbidden in Islamic
finance.
True
False

Financial institutions that act as facilitators are known as ___________.

Investment banks
Commercial banks (X)
Credit banks (X)
Urban banks

Islamic ethics permits charging rent on money.

True
False

The Sharī‘ah permits lotteries in which no one has a personal right or

stake.
True
False

The Sharī‘ah prohibits incentives to consumers when products are sold to

them for a price.
True

False
 Objectives and Course Syllabus
Course Description

This economics and finance course will give you an overview of

the Islamic financial system. You will learn the core principles and
basic models of Islamic finance and establish a framework for
understanding this financial system.

Pre-requisites

No previous knowledge is needed, but a basic knowledge of business

concepts is advantageous.

Learning Objectives

·         The core principles of the Islamic financial system.

·         The
various norms and prohibitions that govern activities and
contracts in the Islamic financial system.

·         The
differences between the Islamic financial system, and its
institutions, and the conventional system.

·         Some of the basic modes of Islamic finance.

Course Outline

An Overview of the Islamic Financial System

·         Introduction

·         Principles of the Islamic Economic System

·         The Roles of Financial Institutions (FIs)

·         The Role of Ethics in the Islamic Financial System

·         Types of Contracts in Islamic Finance  

General Principles

·         Introduction

·         The Basic Norms of the Islamic Financial System

·         Norms Relating to Profit

·         Norms Relating to Mutual Cooperation  

A Framework for the Islamic Financial System—Part 1

·         Introduction

·         The Strategic Role of Financial Institutions in Society

·         Primary Characteristics of the Islamic Financial System

·         Basic Operations of an Islamic Bank

·         Two Approaches for Returns in Islamic Banking

·         Profit/Loss Approach in Islamic Banking

·         Islamic Investment Banking  

A Framework for the Islamic Financial System-Part 2

·         Introduction

·         Concept and Conditions of a Bai’ Mu’ajjal (Credit Sale)

·         Murabaha Sale and Structure

·         Murabaha to Purchase Orderer

Grading Policy

How does grading work? To pass this course, you will need to attain a
course average of at least 60 percent. Students who pass the course will
receive a certificate of completion. These certificates will be issued a few
days after the course closes. The course closes on 08/13/2018 , at 12pm
Eastern Daylight Time (EDT), so if you want a certificate you will need to
have 60% or higher by that time.

What is the Deadline for Weekly Assessments? The Course contains

several types of Assessments, namely, knowledge check simple questions
that usually follow vides and end of the week assessments which are
machine graded. Moreover, assessments also include essay questions and
week summary. The last two type of assessments are evaluated by peers.
There are also 15 questions at the end of each week. There will be also a
final exam at the end the 4th week. 

The following are the graded units of the course with their corresponding
weights in total grade:
No Assessment Description Weight %
.

1 Knowledge Check questions 15

2 Essay questions 5

3 Chapter Summary 0

4 End of week assessments  worth 15% per week X 4 weeks 60

5 Final Exam 20

TOTAL 100