2022-03-12 MCQs For CSAA Exam Preparation

MCQs for CSAA Exam
Preparation:
SS 1 – 48 and GS 1 – 4
Mezbah Uddin Ahmed
Email: mezbah.u.ahmed@gmail.com
12/03/2022
Disclaimer
The questions provided here are to assist the CSAA candidates in their revision. These questions are
developed in personal capacity* and the candidates must not expect repetition of any of these
questions in the exam. Any similarity between the questions here and the exam questions will be
purely coincidental and without any collaboration in whatsoever form between AAOIFI and preparer
of these questions. Also, as the questions did not go through any quality control process, there
could be some unintentional error. If you find any error or there is a confusion regarding a Q&A,
please feel free to send an email to mezbah.u.ahmed@gmail.com.
* Few of the questions are taken from AAOIFI’s Mock Questions
MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

SS (1) Trading in Currencies
Question-1:
Which of the following requirements shall be fulfilled if someone exchange USD for EUR?
A. Both amounts shall be equal
B. The currencies shall be exchanged on spot basis
C. A+B
D. None of the above

Question-2:
“In currency exchange, physical possession is preferred over constructive possession.”
The above statement is:

A. True
B. False

Question-3:
“It is permissible to carry out currency transaction in forward market only if it is for the purpose of
hedging.”

A. True
B. False

Question-4:
If Party A and Party B agreed to exchange USD 1,000 for EUR 850 on the condition that Party A give
USD 500 now and the remaining will give in the future.
If Party A and Party B enter into a currency exchange based on the above condition, the exchange
will be:
A. Fully valid
B. Fully invalid
C. Valid up to USD 500 exchange
D. Fully valid if there is no additional amount charged by Party B

Question-5:
Agency in trading in currencies:
A. is not permissible at all.
B. is permissible, provided that the agent is given an authorization to take possession of, and
deliver, the counter value.
C. a third party may not be appointed as agent to sell currencies without giving him the
authorization to take possession.
D. none of the above.

Question-1:
Which of the following requirements shall be fulfilled if someone exchange USD for EUR?
A. Both amounts shall be equal
B. The currencies shall be exchanged on spot basis
C. A+B

Question-2:
“In currency exchange, physical possession is preferred over constructive possession.”

A. True
B. False

Question-3:
“It is permissible to carry out currency transaction in forward market only if it is for the purpose of
hedging.”

A. True
B. False

Question-4:
If Party A and Party B agreed to exchange USD 1,000 for EUR 850 on the condition that Party A give
USD 500 now and the remaining will give in the future.
If Party A and Party B enter into a currency exchange based on the above condition, the exchange
will be:
A. Fully valid
B. Fully invalid
C. Valid up to USD 500 exchange
D. Fully valid if there is no additional amount charged by Party B

Question-5:
Agency in trading in currencies:
A. is not permissible at all.
B. is permissible, provided that the agent is given an authorization to take possession of, and
deliver, the counter value.
C. a third party may not be appointed as agent to sell currencies without giving him the
authorization to take possession.

SS (2) Debit Card, Charge Card and Credit Card
Question-1:
Which of the following is correct in the case of a debit card?
A. It is permissible to withdraw more than the available funds
B. It is permissible to buy gold, silver or currency
C. It is permissible to withdraw cash
D. All of the above

Question-2:
Which of the following is correct in the case of a credit card?
A. It is permissible to issue a credit card if there is no Shari’ah impermissible element
B. It is not permissible to increase service charges for providing revolving facility
C. It is not permissible to use the credit card for prohibited activities
D. All of the above

Question-3:
Which of the following is a prohibited privilege granted by a card issuing institution to the
cardholder?
A. Conventional life insurance
B. Entrance to prohibited places
C. Prohibited gifts
D. All of the above

Question-4:
Which of the following is not correct in the case of a debit card?
A. It is not permissible to withdraw more than the available funds

D. All of the above

Question-5:
Which of the following is not correct in the case of a credit card?

B. It is permissible to increase service charges for providing revolving facility
D. It is permissible to purchase gold using a credit card

Question-6:
Which of the following is not a prohibited privilege granted by a card issuing institution to the
cardholder?

B. Entrance to casino
C. Discounts on hotels
D. Discounts on alcoholic beverages

Question-7:
It is permissible to purchase gold, silver and currency using charge card.

A. True
B. False

Question-1:
Which of the following is correct in the case of a debit card?
A. It is permissible to withdraw more than the available funds
D. All of the above

Question-2:
Which of the following is correct in the case of a credit card?
B. It is not permissible to increase service charges for providing revolving facility
D. All of the above

Question-3:
Which of the following is a prohibited privilege granted by a card issuing institution to the
cardholder?
B. Entrance to prohibited places
C. Prohibited gifts
D. All of the above

Question-4:
Which of the following is not correct in the case of a debit card?
A. It is not permissible to withdraw more than the available funds

D. All of the above

Question-5:
Which of the following is not correct in the case of a credit card?

B. It is permissible to increase service charges for providing revolving facility
D. It is permissible to purchase gold using a credit card

Question-6:
Which of the following is not a prohibited privilege granted by a card issuing institution to the
cardholder?

B. Entrance to casino
C. Discounts on hotels
D. Discounts on alcoholic beverages

Question-7:
It is permissible to purchase gold, silver and currency using charge card.

A. True
B. False

SS (3) Procrastinating Debtor
Question-1:
Which of the following is permissible for an institution?
A. To investigate a defaulting debtor

B. To accept payment from a debtor in addition to debt if it is part of the contractual conditions
C. To accept donation from a defaulting debtor to pay salaries of the staffs

Question-2:
Which of the following an Islamic bank is permitted to claim from its procrastinating debtor?
A. Compensation for opportunity loss

B. Compensation for loss due to change in value of the currency of the debt
C. Reimbursement for legal and other expenses incurred to recover the debt

Question-3:
Which of the following conditions must be fulfilled prior to asking a procrastinating debtor to pay all the
remaining instalments at once?
i. Notifying the debtor regarding his dues
ii. Lapse of reasonable period of time between notifying the debtor regarding his dues and payment due
date
iii. The debtor being solvent
A. i and ii
B. i and iii
C. ii and iii
D.i, ii and iii

Question-4:
Which of the following statements is not correct?
A.A penalty clause is permissible in an Istisna’a contract

B. It is permissible to exchange list of defaulting debtors with other entities
C. It is permissible to impose excess over debt if it is not preconditional or part of customary
practice
D.None of the above

Question-1:
Which of the following is permissible for an institution?
A. To investigate a defaulting debtor
B. To accept payment from a debtor in addition to debt if it is part of the contractual conditions
C. To accept donation from a defaulting debtor to pay salaries of the staffs

Question-2:
Which of the following an Islamic bank is permitted to claim from its procrastinating debtor?
A. Compensation for opportunity loss

B. Compensation for loss due to change in value of the currency of the debt
C. Reimbursement for legal and other expenses incurred to recover the debt

Question-3:
Which of the following conditions must be fulfilled prior to asking a procrastinating debtor to pay all the
remaining instalments at once?
i. Notifying the debtor regarding his dues
ii. Lapse of reasonable period of time between notifying the debtor regarding his dues and payment due
date
iii. The debtor being solvent
A. i and ii
B. i and iii
C. ii and iii
D.i, ii and iii

Question-4:
Which of the following statements is not correct?
A.A penalty clause is permissible in an Istisna’a contract

B. It is permissible to exchange list of defaulting debtors with other entities
C. It is permissible to impose excess over debt if it is not preconditional or part of customary
practice
D.None of the above

SS (4) Settlement of Debt by Set-Off
Question-1:
Is it permissible to stipulate a condition of set-off in the agreement of deferred payment sale?
A. Yes
B. No

Question-2:
A compulsory set-off is:
A. A compulsory set-off is the discharge of the two debts with the consent of both parties to extinguish
the obligation towards each other.
B. A compulsory set-off is the spontaneous discharge of two debts that is not contingent on the
request or consent of both parties or either party.
C. Discharge of two debts at the request of the creditor for the superior debt and his consent to forgo
the excess of the amount or privilege he is owned over what he owes, whether or not the creditor
for the smaller debt consents.
D. all the above is correct.

Question-3:
Each party should be a creditor and debtor simultaneously in:
A.Compulsory set-off
B. Set-off on demand
C. Contractual set-off
D.All of the above

Question-4:
A ____________ is permissible even without the need for two debts to be similar in kind, type,
description or maturity.
A.Mandatory set-off
B. Contractual set-off
C. Compulsory set-off
D.Set-off on demand

Question-5:
If the set-off of debts is between two difference currencies, the exchange rate will be as of:
A.Debt originating contract date

B. Set-off agreement date
C. Set-off date
D.Any date as agreed between the parties

Question-1:
Is it permissible to stipulate a condition of set-off in the agreement of deferred payment sale?
A. Yes
B. No

Question-2:
A compulsory set-off is:
A. A compulsory set-off is the discharge of the two debts with the consent of both parties to extinguish
the obligation towards each other.
B. A compulsory set-off is the spontaneous discharge of two debts that is not contingent on the
request or consent of both parties or either party.
C. Discharge of two debts at the request of the creditor for the superior debt and his consent to forgo
the excess of the amount or privilege he is owned over what he owes, whether or not the creditor
for the smaller debt consents.
D. all the above is correct.

Question-3:
Each party should be a creditor and debtor simultaneously in:
A.Compulsory set-off
B. Set-off on demand
C. Contractual set-off
D.All of the above

Question-4:
A ____________ is permissible even without the need for two debts to be similar in kind, type,
description or maturity.
A.Mandatory set-off
B. Contractual set-off
C. Compulsory set-off
D.Set-off on demand

Question-5:
If the set-off of debts is between two difference currencies, the exchange rate will be as of:
A.Debt originating contract date

B. Set-off agreement date
C. Set-off date
D.Any date as agreed between the parties

SS (5) Guarantees
Question-1:
Which of the following is correct?
A. It is permissible for the Rab al-Mal to obtain a guarantee from the Mudarib to receive the
expected profit
B. It is permissible for the Rab al-Mal to obtain a guarantee from the Mudarib against any loss it
may suffer due to negligence, misconduct or breach of contract by Mudarib
C. It is permissible for the Rab al-Mal to obtain a guarantee from the Mudarib to receive a profit
equal to the market rate
D. It is permissible for the Rab al-Mal to obtain a guarantee from the Mudarib against any loss it
may suffer

SS (5) Guarantees
Question-1:
It is permissible that:
A. The creditor is entitled to claim the amount of his debt from either the debtor or the guarantor
and he has the choice of claiming his right from either of them.
B. That a personal guarantee contract is designated in a separate contract. It can also be concluded
together with, or before, or after, the conclusion of the contract of a credit transaction.
C. To fix the duration of a personal guarantee.
D. To do all of the above.

SS (5) Guarantees
Question-1:
Payment underwriter is:
A. the intermediary institution that undertakes to pay dues of certificate holders after when realized.
B. the party appointed by the issuer or the issue manager to perform all or part of investment
operations as indicated in the issue prospectus.
C. the intermediary institution that acts for remuneration on behalf of the subscribers in executing the
issue contract.
D. the intermediary financial institution charged with protecting the interests of certificate holders,
supervising the performance of the issue manager and safe custody of documents and guarantees for
consideration stipulated in the issue prospectus on the basis of agency contract.

SS (5) Guarantees
Question-1:
expected profit
B. It is permissible for the Rab al-Mal to obtain a guarantee from the Mudarib against any loss it
may suffer due to negligence, misconduct or breach of contract by Mudarib
C. It is permissible for the Rab al-Mal to obtain a guarantee from the Mudarib to receive a profit
D. It is permissible for the Rab al-Mal to obtain a guarantee from the Mudarib against any loss it
may suffer

SS (5) Guarantees
Question-1:
It is permissible that:
A. The creditor is entitled to claim the amount of his debt from either the debtor or the guarantor
and he has the choice of claiming his right from either of them.
B. That a personal guarantee contract is designated in a separate contract. It can also be concluded
together with, or before, or after, the conclusion of the contract of a credit transaction.
C. To fix the duration of a personal guarantee.
D. To do all of the above.

SS (5) Guarantees
Question-1:
Payment underwriter is:
A. the intermediary institution that undertakes to pay dues of certificate holders after when realized.
B. the party appointed by the issuer or the issue manager to perform all or part of investment
operations as indicated in the issue prospectus.
C. the intermediary institution that acts for remuneration on behalf of the subscribers in executing the
issue contract.
D. the intermediary financial institution charged with protecting the interests of certificate holders,
supervising the performance of the issue manager and safe custody of documents and guarantees for
consideration stipulated in the issue prospectus on the basis of agency contract.

SS (6) Conversion of a Conventional Bank to an
Islamic Bank
Question-1:
If a conventional bank is converted by it existing shareholders into a bank, then the interest and
impermissible earnings made since the bank has been established should be disposed of.
A. True
B. False

Islamic Bank
Question-2:
Treatment of riba-based loans extended by the bank to third parties before the decision to convert into an Islamic
bank is by:
A. Terminating these loans and then converting the realized amounts of these loans into financing in compliance
with the provisions of Islamic Shari’a.
B. Maintaining them while disposing of their interest.
C. Disposing of long-term loans by selling them to third parties at a price less the interest amount earned thereon
and terminating short term loans by converting them into Islamic finance.
D. The bank has the choice of the first and third option, subject to seeking an advice from the General Meeting.

Islamic Bank
Question-1:
If a conventional bank is converted by it existing shareholders into a bank, then the interest and
impermissible earnings made since the bank has been established should be disposed of.
A. True
B. False

Islamic Bank
Question-2:
Treatment of riba-based loans extended by the bank to third parties before the decision to convert into an Islamic
bank is by:
A. Terminating these loans and then converting the realized amounts of these loans into financing in compliance
with the provisions of Islamic Shari’a.
B. Maintaining them while disposing of their interest.
C. Disposing of long-term loans by selling them to third parties at a price less the interest amount earned thereon
and terminating short term loans by converting them into Islamic finance.
D. The bank has the choice of the first and third option, subject to seeking an advice from the General Meeting.

SS (7) Hawalah
Question-1:
The conditions of hawala include the following:
A. The validity of hawala requires the consent of all parties, namely the transferor, the transferee
and the payer.
B. for hawala to be valid, the transferor shall be a debtor to the transferee.
C. (A) and (B).

SS (7) Hawalah
Question-2:
One of the cases in which the transferee is entitled to have a right of recourse against the transferor
is if the payer is declared bankrupt in his lifetime, or if the institution is declared bankrupt by a court
order.
A. True
B. False

SS (7) Hawalah
Question-1:
The conditions of hawala include the following:
A. The validity of hawala requires the consent of all parties, namely the transferor, the transferee
and the payer.
B. for hawala to be valid, the transferor shall be a debtor to the transferee.
C. (A) and (B).

SS (7) Hawalah
Question-2:
One of the cases in which the transferee is entitled to have a right of recourse against the transferor
is if the payer is declared bankrupt in his lifetime, or if the institution is declared bankrupt by a court
order.
A. True
B. False

SS (8) Murabahah
Question-1:
Which of the following is a feature of a murabahah contract?
A. The profit must be disclosed as a percentage of the selling price
B. The purchase price will be settled on spot and sale price will be settled on deferred
C. The profit should not be fixed

SS (8) Murabahah
Question-2:
Is it a must for an Islamic bank to purchase an item only in response to its customer’s application?
A. Yes
B. No

SS (8) Murabahah
Question-3:
Which of the following is true in the context of a murabahah contract?
A. The customer shall always identify the source of supply
B. The Islamic bank shall reject the source of supply identified by the customer
C. The Islamic bank may decline to carry out the transaction if the source of supply identified by it
is rejected by the customer

SS (8) Murabahah
Question-4:
A. The customer’s commitment to purchase is a must prior to an Islamic bank purchase an item
B. It is not an Islamic bank’s responsibility to prepare documents pertaining to customer’s
commitment to purchase
C. The Islamic bank may have a standard application form for the customer to express purchase
commitment
D. A single set of document cannot contain the customer’s request to purchase and commitment to
purchase

SS (8) Murabahah
Question-5:
Which of the following is permissible?
A. The proforma invoice is addressed either to the customer or the Islamic bank
B. The offer of sale to have validity for a limited period
C. The supplier to provide either a general offer or a specific offer
D. All of the above

SS (8) Murabahah
Question-6:
A. The Islamic bank may carry out the Murabahah contract irrespective of the customer’s
acceptance of the offer made by the supplier
B. If the customer accept offer of the supplier, the contract between the supplier and the customer
become invalid
C. The Islamic bank is allowed to accept offer only if the offer is addressed to it

SS (8) Murabahah
Question-7:
In the case of a Murabahah to the purchase orderer, which of the following is a permissible way of
obtaining guarantee from the customer regarding the good performance by the supplier?
A. The guarantee is in the customer’s personal capacity
B. The guarantee is in the customer’s capacity as the purchase orderer
C. The guarantee is in the customer’s capacity as the agent of the Islamic bank

SS (8) Murabahah
Question-8:
Which of the following is a correct treatment of Hamish Jiddiyyah?
A. This is refunded to the customer upon execution of the Murabahah contract
B. This is adjusted with the price payable by the customer
C. Damages suffered by the Institution is deducted from this
D. All of the above

SS (8) Murabahah
Question-9:
Which of the following is a correct statement?
A. It is not permissible for the Institution to sell any item in a Murabahah transaction before it
acquires such item
B. Actual or constructive, either type of possession is allowed for the Institution to sell the
Murabahah commodity
C. Murabahah contract with customer is considered void if the contract with the supplier become
void
D. All of the above

SS (8) Murabahah
Question-10:
Is it allowed for the Institution to appoint the purchase orderer as its agent to purchase the item?
A. Yes
B. No

SS (8) Murabahah
Question-11:
Which of the following is considered as a constructive possession?
A. Receipt of a bill of lading by the Institution or its agent
B. Institution’s receipt of certificates of storage issued by warehouse
C. Item placed at the acquirer’s disposal so as to enable him to deal with it at his will, even though
no physical delivery has taken place
D. All of the above

SS (8) Murabahah
Question-12:

A. The Islamic bank may force the client to purchase the asset if his promise is binding
B. The Islamic bank has right over the Murabahah price even if the Murabahah transaction was not
executed
C. The Islamic bank has right only over the actual damage suffered by it due to non-fulfilment of
promise by the customer
D. The Islamic bank has right over the Hamish Jiddiyyah paid by the customer

SS (8) Murabahah
Question-13:
Customer X requested an Islamic bank to purchase a specified asset and also made a promise to purchase it from the
Islamic bank. The customer provided a Hamish Jiddiayah of CU 10,000.
The Islamic bank has purchased the asset for CU 250,000, and invited Customer X to execute the Murabahah contract
as per the latter’s promise. However, Customer X refused to execute the Murabahah contract.
The Islamic bank has sold the asset to a third party for CU 245,000.

A. The Islamic bank will claim CU 250,000 from Customer X
B. The Islamic bank will claim CU 5,000 from Customer X
C. The Islamic bank will return CU 5,000 to Customer X
D. There is no right or obligation of the Islamic bank regarding Customer X

SS (8) Murabahah
Question-14:
A. The profit in a Murabahah transaction shall be disclosed as a mark-up, not as a profit margin.
B. The profit in a Murabahah transaction shall be disclosed as a margin, not as a profit mark-up.
C. The profit in a Murabahah transaction can be disclosed as either mark-up or profit margin.
D. There is no need to disclose the mark-up or profit margin in a Murabahah transaction.

SS (8) Murabahah
Question-1:
Which of the following is a feature of a murabahah contract?
A. The profit must be disclosed as a percentage of the selling price
B. The purchase price will be settled on spot and sale price will be settled on deferred
C. The profit should not be fixed

SS (8) Murabahah
Question-2:
Is it a must for an Islamic bank to purchase an item only in response to its customer’s application?
A. Yes
B. No

SS (8) Murabahah
Question-3:
Which of the following is true in the context of a murabahah contract?
A. The customer shall always identify the source of supply
B. The Islamic bank shall reject the source of supply identified by the customer
C. The Islamic bank may decline to carry out the transaction if the source of supply identified by it
is rejected by the customer

SS (8) Murabahah
Question-4:
A. The customer’s commitment to purchase is a must prior to an Islamic bank purchase an item
B. It is not an Islamic bank’s responsibility to prepare documents pertaining to customer’s
commitment to purchase
C. The Islamic bank may have a standard application form for the customer to express purchase
commitment
D. A single set of document cannot contain the customer’s request to purchase and commitment to
purchase

SS (8) Murabahah
Question-5:
A. The proforma invoice is addressed either to the customer or the Islamic bank
B. The offer of sale to have validity for a limited period
C. The supplier to provide either a general offer or a specific offer
D. All of the above

SS (8) Murabahah
Question-6:
A. The Islamic bank may carry out the Murabahah contract irrespective of the customer’s
acceptance of the offer made by the supplier
B. If the customer accept offer of the supplier, the contract between the supplier and the customer
become invalid
C. The Islamic bank is allowed to accept offer only if the offer is addressed to it
As per 2/2/1, there can be an acceptance of a general offer, i.e. offer without specifying the addressee. Taking this as the
basis, it appears that the Islamic bank is allowed to accept the offer even if the offer is not addressed to it (or to no one).
SS (8) Murabahah
Question-7:
In the case of a Murabahah to the purchase orderer, which of the following is a permissible way of
obtaining guarantee from the customer regarding the good performance by the supplier?
A. The guarantee is in the customer’s personal capacity
B. The guarantee is in the customer’s capacity as the purchase orderer
C. The guarantee is in the customer’s capacity as the agent of the Islamic bank

SS (8) Murabahah
Question-8:
Which of the following is a correct treatment of Hamish Jiddiyyah?
A. This is refunded to the customer upon execution of the Murabahah contract
B. This is adjusted with the price payable by the customer
C. Damages suffered by the Institution is deducted from this
D. All of the above

SS (8) Murabahah
Question-9:
Which of the following is a correct statement?
A. It is not permissible for the Institution to sell any item in a Murabahah transaction before it
acquires such item
B. Actual or constructive, either type of possession is allowed for the Institution to sell the
Murabahah commodity
C. Murabahah contract with customer is considered void if the contract with the supplier become
void
D. All of the above

SS (8) Murabahah
Question-10:
Is it allowed for the Institution to appoint the purchase orderer as its agent to purchase the item?
A. Yes
B. No

SS (8) Murabahah
Question-11:
Which of the following is considered as a constructive possession?
A. Receipt of a bill of lading by the Institution or its agent
B. Institution’s receipt of certificates of storage issued by warehouse
C. Item placed at the acquirer’s disposal so as to enable him to deal with it at his will, even though
no physical delivery has taken place
D. All of the above

SS (8) Murabahah
Question-12:

A. The Islamic bank may force the client to purchase the asset if his promise is binding
B. The Islamic bank has right over the Murabahah price even if the Murabahah transaction was not
executed
C. The Islamic bank has right only over the actual damage suffered by it due to non-fulfilment of
promise by the customer
D. The Islamic bank has right over the Hamish Jiddiyyah paid by the customer

SS (8) Murabahah
Question-13:
Customer X requested an Islamic bank to purchase a specified asset and also made a promise to purchase it from the
Islamic bank. The customer provided a Hamish Jiddiayah of CU 10,000.
The Islamic bank has purchased the asset for CU 250,000, and invited Customer X to execute the Murabahah contract
as per the latter’s promise. However, Customer X refused to execute the Murabahah contract.
The Islamic bank has sold the asset to a third party for CU 245,000.

A. The Islamic bank will claim CU 250,000 from Customer X
B. The Islamic bank will claim CU 5,000 from Customer X
C. The Islamic bank will return CU 5,000 to Customer X
D. There is no right or obligation of the Islamic bank regarding Customer X

SS (8) Murabahah
Question-14:
A. The profit in a Murabahah transaction shall be disclosed as a mark-up, not as a profit margin.
B. The profit in a Murabahah transaction shall be disclosed as a margin, not as a profit mark-up.
C. The profit in a Murabahah transaction can be disclosed as either mark-up or profit margin.
D. There is no need to disclose the mark-up or profit margin in a Murabahah transaction.

SS (9) Ijarah and Ijarah Muntahia Bittamleek
Question-1:
A. The lessor must be the legal owner of the leased asset
B. The lessee must be the legal owner of the leased asset
C. The lessor could be the owner of the asset or the usufruct
D. The lessee could be the owner of the asset or the usufruct

Question-2:
There must be a master agreement if two parties are entering into multiple Ijarah contracts.
A. True
B. False

Question-3:
An Islamic bank purchased an asset to lease it out under an Ijarah Muntahia Bittamleek contract. The
purchase was made in response to a customer’s request who have paid CU 10,000 as security deposit.
However, after the Islamic bank purchased the asset, the customer declined to lease it. Hence, the Islamic
bank leased out the asset under Ijarah Muntahia Bittamleek to another party. The total rental receivable
from this lease is CU 495,000, whereas the total rental receivable from the previous arrangement was CU
525,000.
How much the Islamic bank must return to the customer if the total cost incurred in acquiring the asset
was CU 500,000?
A. Nil
B. CU 5,000
C. CU 10,000
D. CU 30,000

Question-4:
525,000.
was CU 500,000?
A. Nil
B. CU 5,000
C. CU 10,000
D. CU 30,000

Question-5:
525,000.
What is the actual damage of the Islamic bank if the total cost incurred in acquiring the asset was CU
500,000?
A. CU 10,000
B. CU 25,000
C. CU 50,000
D. CU 75,000

Question-6:
An Islamic bank purchased an asset to lease it out under an operating Ijarah. The purchase was made in
response to a customer’s request who have paid CU 10,000 as security deposit. However, after the
Islamic bank purchased the asset, the customer declined to lease it. Hence, the Islamic bank leased out
the asset under operating Ijarah to another party. The Islamic bank estimated that the total rental
receivable from this lease is CU 495,000, whereas the total rental receivable from the previous
arrangement was CU 525,000.
was CU 500,000?
A. Nil
B. CU 5,000
C. CU 10,000
D. CU 30,000

Question-7:
Islamic bank purchased the asset, the customer declined to lease it. Hence, the Islamic bank sold the
asset to a third party. The sale price was CU 495,000, whereas the Islamic bank expected to receive CU
525,000 as lease rental.
500,000?
A. Nil
B. CU 5,000
C. CU 10,000
D. CU 30,000

Question-8:
A. The lease contract should be preceded by acquisition of either the asset to be leased or the
usufruct of that asset
B. It is permissible to treat the security deposit as advance lease rental
C. Sale and leaseback is allowed if Ijarah is not stipulated as a condition of sale
D. All of the above

Question-9:
Which of the following is allowed in a lease and leaseback arrangement?
A. The rent paid in deferred to be higher than the rent paid on spot
B. The rent paid on spot to be higher than the rent paid in deferred
C. The two lease rentals to be different if both are paid on a spot basis
D. The two lease rentals to be different if there is an interval between them

Question-10:
In a headlease and sublease arrangement, which one of the following is allowed?
A. Headlease rental to be CU 1,000 paid on spot, and sublease rental to be CU 950 paid on deferred
B. Headlease rental to be CU 1,000 paid on deferred, and sublease rental to be CU 1,050 paid on
deferred
C. Head lease rental to be CU 1,050 paid on one month deferred, and sublease rental to be CU
1,100 paid on two months deferred
D. Head lease rental to be CU 1,500 and sublease rental to be CU 1,550, and both paid on spot

Question-11:
An Islamic bank and its customer jointly acquired an asset. The ownership ratio is 80 : 20 (Islamic
bank : Customer). The rental for this asset is CU 8,000 per month. If the customer lease the asset for
its own use, how much he will pay as rental?
A. Nil
B. CU 1,600
C. CU 4,800
D. CU 6,400

Question-12:
Which of the following is incorrect?
A. The customer may act as an agent of the Institution to acquire the Ijarah asset
B. It is preferrable that the agent for acquiring the asset is someone other than the customer
C. Ijarah is a binding contract for both the customer and institution
D. The promises exchanged between the customer and institution are binding

Question-13:
A. The lessor must bear the costs of all major maintenance
B. The lessor must bear the cost of insurance
C. The lessor may consider its insurance cost in determining the lease rental
D. The lessor has the right to increase the agreed lease rental if the actual insurance cost is higher
than the anticipated

Question-14:
On 01 January 20X1, a customer entered into an Ijarah contract with an Islamic bank. As per agreement, Ijarah asset
will be made available to the customer on 31 January 20X1. However, in reality the asset was made available to the
customer on 01 March 20X1. The customer started to using the Ijarah asset on 01 April 20X1. The annual rental of the
Ijarah was determined as CU 12,000. What will be the total Ijarah rental payable by the customer for the year-ending
31 December 20X1?
A. CU 9,000
B. CU 10,000
C. CU 11,000
D. CU 12,000

Question-15:
On 01 January 20X1, a customer entered into an Ijarah contract with an Islamic bank. The Ijarah tenure is
12 months, and rental per month is CU 1,000.
If on 30 June 20X1, the customer acquire full ownership of the asset from the Islamic bank, how much
rental the Islamic bank will recognize for the year-ending 31 December 20X1?
A. CU 1,000
B. CU 6,000
C. CU 12,000
D. CU 18,000

Question-16:
A. It is allowed to execute an Ijarah contract and a sale contract for the same asset on the same day
B. It is allowed to execute an Ijarah contract and a sale contract for the same asset on the same day
if the sale contract carries a future effective date
C. It is allowed for the lessor to sell the Ijarah asset to the lessee and continue receiving rental until
the end of originally agreed lease period

Question-17:
bank : Customer). The rental for this asset is CU 10,000 per month. If the customer lease the asset
for its own use, how much he will pay as rental?
A. Nil
B. CU 1,000
C. CU 9,000
D. CU 10,000

Question-18:
If the IFI contracts a customer to provide him with finance through an educational services contract, whereby the IFI
will provide educational benefits for specific study hours described in detail, this type of contract is considered a
described Ijarah contract, and in this case:
A. The IFI must engage the educational institution providing the educational services of the same specifications
before it signs the contract with the customer.
B. There is no objection for the IFI to contact the customer first and then engage the educational institution
providing the educational services.
C. The IFI must enter into a Musharaka contract with the educational institution providing the educational services,
whether before contracting the customer or afterwards.
D. This type of contract is invalid.

Question-19:
In an Ijarah contract, the major maintenance of the leased asset is required to keep it in the condition necessary to
provide the contractual benefits under the lease:
A. It is impermissible that the lessor delegates to the lessee the task of carrying out such maintenance at the
lessor's cost.
B. It is impermissible that the lessor stipulates that the lessee is required to keep the leased asset in the condition
necessary to provide the contractual benefits.
C. It is impermissible that the lessor stipulates that the lessee carries out operating or periodical (ordinary)
maintenance.
D. All of the above is true

Question-20:
In an Ijarah contract, the lessor’s entitlement to the rental runs from:
A. The time when the lessee starts to benefit from the asset
B. The time when the lessor makes the usufruct of the asset available to the lessee
C. The time when the lease contract is signed
D. A+B

Question-1:
A. The lessor must be the legal owner of the leased asset
B. The lessee must be the legal owner of the leased asset
C. The lessor could be the owner of the asset or the usufruct
D. The lessee could be the owner of the asset or the usufruct

Question-2:
There must be a master agreement if two parties are entering into multiple Ijarah contracts.
A. True
B. False

Question-3:
525,000.
was CU 500,000?
A. Nil
B. CU 5,000
C. CU 10,000
D. CU 30,000

Question-4:
525,000.
was CU 500,000?
A. Nil
B. CU 5,000
C. CU 10,000
D. CU 30,000

Question-5:
525,000.
500,000?
A. CU 10,000
B. CU 25,000
C. CU 50,000
D. CU 75,000

Question-6:
Islamic bank purchased the asset, the customer declined to lease it. Hence, the Islamic bank leased out
the asset under operating Ijarah to another party. The Islamic bank estimated that the total rental
receivable from this lease is CU 495,000, whereas the total rental receivable from the previous
arrangement was CU 525,000.
was CU 500,000?
A. Nil
B. CU 5,000
C. CU 10,000
D. CU 30,000

Question-7:
Islamic bank purchased the asset, the customer declined to lease it. Hence, the Islamic bank sold the
asset to a third party. The sale price was CU 495,000, whereas the Islamic bank expected to receive CU
525,000 as lease rental.
500,000?
A. Nil
B. CU 5,000
C. CU 10,000
D. CU 30,000

Question-8:
A. The lease contract should be preceded by acquisition of either the asset to be leased or the
usufruct of that asset
B. It is permissible to treat the security deposit as advance lease rental
C. Sale and leaseback is allowed if Ijarah is not stipulated as a condition of sale
D. All of the above

Question-9:
Which of the following is allowed in a lease and leaseback arrangement?
A. The rent paid in deferred to be higher than the rent paid on spot
B. The rent paid on spot to be higher than the rent paid in deferred
C. The two lease rentals to be different if both are paid on a spot basis
D. The two lease rentals to be different if there is an interval between them

Question-10:
In a headlease and sublease arrangement, which one of the following is allowed?
A. Headlease rental to be CU 1,000 paid on spot, and sublease rental to be CU 950 paid on deferred
B. Headlease rental to be CU 1,000 paid on deferred, and sublease rental to be CU 1,050 paid on
deferred
C. Head lease rental to be CU 1,050 paid on one month deferred, and sublease rental to be CU
1,100 paid on two months deferred
D. Head lease rental to be CU 1,500 and sublease rental to be CU 1,550, and both paid on spot

Question-11:
bank : Customer). The rental for this asset is CU 8,000 per month. If the customer lease the asset for
its own use, how much he will pay as rental?
A. Nil
B. CU 1,600
C. CU 4,800
D. CU 6,400

Question-12:
A. The customer may act as an agent of the Institution to acquire the Ijarah asset
B. It is preferrable that the agent for acquiring the asset is someone other than the customer
C. Ijarah is a binding contract for both the customer and institution
D. The promises exchanged between the customer and institution are binding

Question-13:
A. The lessor must bear the costs of all major maintenance
B. The lessor must bear the cost of insurance
C. The lessor may consider its insurance cost in determining the lease rental
D. The lessor has the right to increase the agreed lease rental if the actual insurance cost is higher
than the anticipated

Question-14:
On 01 January 20X1, a customer entered into an Ijarah contract with an Islamic bank. As per agreement, Ijarah asset
will be made available to the customer on 31 January 20X1. However, in reality the asset was made available to the
customer on 01 March 20X1. The customer started to using the Ijarah asset on 01 April 20X1. The annual rental of the
Ijarah was determined as CU 12,000. What will be the total Ijarah rental payable by the customer for the year-ending
31 December 20X1?
A. CU 9,000
B. CU 10,000
C. CU 11,000
D. CU 12,000

Question-15:
On 01 January 20X1, a customer entered into an Ijarah contract with an Islamic bank. The Ijarah tenure is
12 months, and rental per month is CU 1,000.
If on 30 June 20X1, the customer acquire full ownership of the asset from the Islamic bank, how much
rental the Islamic bank will recognize for the year-ending 31 December 20X1?
A. CU 1,000
B. CU 6,000
C. CU 12,000
D. CU 18,000

Question-16:
A. It is allowed to execute an Ijarah contract and a sale contract for the same asset on the same day
B. It is allowed to execute an Ijarah contract and a sale contract for the same asset on the same day
if the sale contract carries a future effective date
C. It is allowed for the lessor to sell the Ijarah asset to the lessee and continue receiving rental until
the end of originally agreed lease period

Question-17:
bank : Customer). The rental for this asset is CU 10,000 per month. If the customer lease the asset
for its own use, how much he will pay as rental?
A. Nil
B. CU 1,000
C. CU 9,000
D. CU 10,000

Question-18:
If the IFI contracts a customer to provide him with finance through an educational services contract, whereby the IFI
will provide educational benefits for specific study hours described in detail, this type of contract is considered a
described Ijarah contract, and in this case:
A. The IFI must engage the educational institution providing the educational services of the same specifications
before it signs the contract with the customer.
B. There is no objection for the IFI to contact the customer first and then engage the educational institution
providing the educational services.
C. The IFI must enter into a Musharaka contract with the educational institution providing the educational services,
whether before contracting the customer or afterwards.
D. This type of contract is invalid.

Question-19:
In an Ijarah contract, the major maintenance of the leased asset is required to keep it in the condition necessary to
provide the contractual benefits under the lease:
A. It is impermissible that the lessor delegates to the lessee the task of carrying out such maintenance at the
lessor's cost.
B. It is impermissible that the lessor stipulates that the lessee is required to keep the leased asset in the condition
necessary to provide the contractual benefits.
C. It is impermissible that the lessor stipulates that the lessee carries out operating or periodical (ordinary)
maintenance.
D. All of the above is true

Question-20:
In an Ijarah contract, the lessor’s entitlement to the rental runs from:
A. The time when the lessee starts to benefit from the asset
B. The time when the lessor makes the usufruct of the asset available to the lessee
C. The time when the lease contract is signed
D. A+B

SS (10) Salam and Parallel Salam
Question-1:
In Salam contracts, if the quality of the delivered goods is inferior to that required by the contractual
specifications:
A. the buyer is entitled to reject the goods.

B. the buyer is entitled to accept the goods in that condition, and this action is considered as ethical
acceptance.
C. the two parties may agree to a settlement on terms for acceptance of the goods even at a discounted
price.
D. all the above.

SS (10) Salam and Parallel Salam
Question-1:
In Salam contracts, if the quality of the delivered goods is inferior to that required by the contractual
specifications:
A. the buyer is entitled to reject the goods.

B. the buyer is entitled to accept the goods in that condition, and this action is considered as ethical
acceptance.
C. the two parties may agree to a settlement on terms for acceptance of the goods even at a discounted
price.
D. all the above.

SS (11) Istisnaa and Parallel Istisnaa
Question-1:
The difference between……. is that under the former contract, the party performing it undertakes to
provide materials and work, while under the latter one the party performing it undertakes to
provide work without being committed to provide manufacturing materials.
A. Istisna’a and Ijarah.

B. Istisna’a and Salam.
C. Istisna’a and Murabaha.

Question-2:
The same rulings that apply to the sale contract also apply to the Istisna’a contract. For example, it
is permissible for the manufacturer to include a defect exclusion clause by stipulating exclusion of
liability as to defects that may arise in the manufactured subject-matter of the Istisna’a contract.
A. True
B. False

Question-1:
The difference between……. is that under the former contract, the party performing it undertakes to
provide materials and work, while under the latter one the party performing it undertakes to
provide work without being committed to provide manufacturing materials.
A. Istisna’a and Ijarah.

B. Istisna’a and Salam.
C. Istisna’a and Murabaha.

Question-2:
The same rulings that apply to the sale contract also apply to the Istisna’a contract. For example, it
is permissible for the manufacturer to include a defect exclusion clause by stipulating exclusion of
liability as to defects that may arise in the manufactured subject-matter of the Istisna’a contract.
A. True
B. False

SS (12) Sharikah (Musharakah) and Modern
Corporations
Question-1:
In al-inan company, the partners bear the loss:
A. In accordance with the contribution of each partner to the capital.

B. In accordance with the percentages they agree on.
C. In accordance with practice, custom and usage.

SS (12) Sharikah (Musharakah) and Modern
Corporations
Question-1:
In al-inan company, the partners bear the loss:
A. In accordance with the contribution of each partner to the capital.

B. In accordance with the percentages they agree on.
C. In accordance with practice, custom and usage.

SS (13) Mudarabah & SS 40: Distribution of Profit
in Mudarabah-Based Investment Accounts
Question-1:
Who bear the loss if the investment is based on a Mudarabah contract?
A. Only Mudarib
B. Only Rab al-Mal
C. Shared between Mudarib and Rab al-Mal based on pre-agreed loss sharing ratio
D. Shared between Mudarib and Rab al-Mal based on pre-agreed profit sharing ratio

Question-2:
expected profit
B. It is permissible for the Rab al-Mal to obtain a guarantee from the Mudarib to receive a profit
C. It is permissible for the Rab al-Mal to obtain a guarantee from the Mudarib against any loss it
may suffer
D. It is permissible for the Rab al-Mal to obtain a guarantee from the Mudarib against loss it may
suffer due to negligence, misconduct or breach of contract by Mudarib
Question-3:
A Rab al-Mal have invested CU 1,000 based on a Mudarabah contract. The expected profit from the
investment was CU 150. If the Mudarabah investment suffer a loss of CU 50 due to Mudarib’s
negligence, misconduct or breach of contractual terms, then how much he will be liable to pay to
the Rab al-Mal in addition to the remaining balance of the Mudarabah capital?
A. CU 50
B. CU 100
C. CU 150
D. CU 200

Question-4:
Which of the following is not permissible in an unrestricted Mudarabah?
A. For the Rab al-Mal not to impose any restriction over Mudarib
B. For the Rab al-Mal to trust on the expertise of the Mudarib
C. For the Mudarib to invest in not-for-profit businesses
D. For the Mudarib to adhere to customs in management of Mudarabah investment

Question-5:
A. Mudarib to sign a Mudarabah contract with the agent of Rab al-Mal
B. Rab al-Mal to sign a Mudarabah contract with the agent of Mudarib
C. The agent of Mudarib to sign a Mudarabah contract with the agent of Rab al-Mal
D. All of the above

Question-6:
Which of the following will not be included in a memorandum of understanding for Mudarabah
contract?
A. Restricted or unrestricted mudarabah
B. Profit sharing ratio
C. Loss sharing ratio
D. Type of guarantee against Mudarib’s breach of contract

Question-7:
The capital invested by a Rab al-Mal was CU 1,000 in cash and a tangible asset. At the time of
investment, the market value of the tangible asset was CU 1,500, but the contracting parties agreed
on value of CU 1,600. However, at the termination of the Mudarabah, the market value of the
tangible asset became CU 2,000.
In the above scenario, how much will be recognized as Mudarabah capital?

A. CU 1,000
B. CU 2,500
C. CU 2,600
D. CU 3,000

Question-8:
investment, the market value of the tangible asset was CU 1,500. However, at the termination of the
Mudarabah, the market value of the tangible asset became CU 2,000.

A. CU 1,000
B. CU 2,500
C. CU 2,600
D. CU 3,000
Question-9:
Which of the following is not acceptable regarding Mudarabah capital?
A. For Rab al-Mal to deposit the Mudarabah capital in Mudarib’s bank account
B. For Rab al-Mal to deliver certain trading goods (that the parties agreed to be part of Mudarabah
capital) at the Mudarib’s warehouse
C. For Rab al-Mal to relinquish its receivable claim that was due by Mudarib and treat that as
Mudarabah capital
D. For Rab al-Mal to put the Mudarabah capital fully at disposal of the Mudarib

Question-10:
Which of the following is not an acceptable form of Mudarabah capital?
A. Cash
B. Debt owed to Rab al-Mal
C. Trading goods
D. Machinery

Question-11:
Which of the following is permissible in distribution of Mudarabah profit?
A. Distribution of profit based on a pre-agreed profit sharing ratio
B. For Mudarib to receive 30% of the profit and for Rabb al-Mal to receive 70% of the profit
C. For Mudarib to receive CU 400 and for Rab al-Mal to receive CU 600 as they respectively
represent 40% and 60% of the profit generated
D. All of the above

Question-12:
Which of the following is not permissible in distribution of Mudarabah profit?
A. For Mudarib to receive minimum CU 1,000, and any remaining profit to be given to Rab al-Mal
B. For Rab al-Mal to receive minimum CU 1,000, and any remaining profit to be given to Mudarib
C. For Rab al-Mal to receive minimum 10% of the capital invested as profit, and any remaining
profit to be given to Mudarib
D. All of the above

Question-13:
On 01 January 2021, a Rab al-Mal provided CU 1,000 as capital of a Mudarabah. The profit sharing
ratio agreed on this date was 70:30 (Rab al-Mal : Mudarib). However, on 15 July 2021 the Mudarib
changed the profit sharing ratio to 75: 25, and notified this to the Rab al-Mal. The Rab al-Mal did
not raise any objection to the change. The performance of the Mudarabah during the period was:
Q1: Profit CU 50
Q2: Profit CU 40
Q3: Profit CU 60
Q4: Profit CU 30
In this scenario, what will be the total amount of profit that the Rab al-Mal will receive in 2021?
A. CU 52.50
B. CU 127.50
C. CU 130.50
D. CU 49.50
Question-14:
A. For Mudarib to fix the amount of profit that he should receive
B. For Rab al-Mal to fix the amount of profit that he should receive
C. For Mudarib or Rab al-Mal to fix the minimum amount of profit that they should receive

Question-15:
A. For Mudarib to fix the maximum amount of profit that he may receive
B. For Rab al-Mal to fix the maximum amount of profit that he may receive
C. For Mudarib or Rab al-Mal not to receive profit above a certain amount
D. All of the above

Question-16:
It is allowed in a Mudarabah contract to set a celling in profit distribution to any of the parties, but it
is not allowed to set a floor in profit distribution.

A. Ture
B. False

Question-17:
A Rab al-Mal provided CU 1,000 as capital of a Mudarabah. Any profit will be distributed at 70:30
ratio between the Rab al-Mal and Mudarib. If the Mudarabah suffer a loss of CU 150, how much will
be returned to the Rab al-Mal at the end of the Mudarabah?
A. CU 1,000
B. CU 850
C. CU 150
D. Nil

Question-18:
ratio between the Rab al-Mal and Mudarib. The performance of the Mudarabah over its tenure of
three years was as follows:
Year-1: Loss CU 100
Year-2: Loss CU 80
Year-3: Profit CU 250
How much the Rab al-Mal will receive in Year-3 as profit from the Mudarabah?
A. CU 700
B. CU 250
C. CU 175
D. CU 49

Question-19:
A Rab al-Mal provided CU 1,000 as capital of a Mudarabah. Any profit will be distributed at 70:30 ratio
between the Rab al-Mal and Mudarib. The performance (i.e., operating profit or loss) of the Mudarabah over
its tenure of three years was as follows :
Year-3: Loss CU 200
At the end of Year-3, at liquidation of the Mudarabah, the Mudarib realized CU 1,200 by selling the Mudarabah
assets. There was no actual or constructive valuation before this date.
For Rab al-Mal, what will be the final entitlement to profit from this Mudarabah?
A. CU 140
B. CU 140.70
C. CU 147
D. Nil

Question-20:
ratio between the Rab al-Mal and Mudarib.
The Mudarib comingled its own capital of CU 2,000 with the capital of Rab al-Mal while making the
investment. If the profit from the investment is CU 250, how much profit the Rab al-mal will
receive?
A. CU 53.57
B. CU 75
C. CU 125
D. CU 250

Question-21:
Which of the following is not allowed in a Mudarabah?
A. For Mudarib to charge a fee to Rab al-Mal for hiring someone to do the tasks of Mudarib
B. To make charitable donations from the Mudarabah fund without Rab al-Mal’s consent or not for
obvious benefit of the Mudarabah
C. To give loan from the Mudarabah fund without Rab al-Mal’s consent or not for obvious benefit
of the Mudarabah
D. All of the above

Question-22:
The total investable fund of an IFI includes CU 100 from shareholders and CU 1,000 from investment
account holders. If the total investment opportunity available to the IFI is only CU 900, assuming
equality in investment is ensured, how much will be invested from the shareholders’ funds and
funds of investment account holders?
A. Shareholders’ funds: CU 450; Funds of investment account holders: CU 450
B. Shareholders’ funds: CU 100; Funds of investment account holders: CU 800
C. Shareholders’ funds: CU 81.82; Funds of investment account holders: CU 818.18
D. Shareholders’ funds: CU 100; Funds of investment account holders: CU 1,000

Question-23:
An IFI has disclosed that it gives priority to its investment account holders every time it makes an
investment. The total investable fund of the IFI includes CU 200 from shareholders and CU 1,200
from investment account holders. However, total investment opportunity available to the IFI is only
CU 1,250. How much will be invested from the shareholders’ funds and funds of investment account
holders?
A. Shareholders’ funds: CU 200; Funds of investment account holders: CU 1,050
B. Shareholders’ funds: CU 50; Funds of investment account holders: CU 1,200
C. Shareholders’ funds: CU 178.57; Funds of investment account holders: CU 1,071.43

Question-24:
Which of the following define a loss in a Mudarabah?
A. If total expense is higher than total income
B. If total income is lower than total expense
C. If there is a depletion of the capital invested
D. All of the above

Question-25:
Which of the following is not permissible in a Mudarabah?
A. To distribute a profit even if the Mudarabah suffer a loss
B. To fully distribute the profit attributable to Rab al-Mal
C. To retain part of the profit attributable to Rab al-Mal and invest that as part of Mudarabah
capital
D. To provide advance profit to the Rab al-Mal

Question-26:
It is permissible for the contracting parties in a Mudarabah to allocate a portion of the profit to a
third party. This third party must be –
A. A charitable entity
B. Someone with blood relationship with Rab al-mal
C. Someone with blood relationship with Mudarib

Question-27:
In a Mudarabah contract, what shall be the treatment for the relinquished portion of PER and IRR of
the exiting party?
A. It shall be treated as an income for Mudarib
B. It shall be added to the equity of Mudarib
C. It shall be devoted to charitable purposes
D. It shall be deposited in government treasury

Question-28:
Which of the following is the objective of a Mudarabah partnership?
A. To do charitable work
B. One party to do charity and other party to receive profit
C. One party to receive profit and other party to bear loss
D. Both parties to share profit

Question-1:
Who bear the loss if the investment is based on a Mudarabah contract?
A. Only Mudarib
B. Only Rab al-Mal
C. Shared between Mudarib and Rab al-Mal based on pre-agreed loss sharing ratio
D. Shared between Mudarib and Rab al-Mal based on pre-agreed profit sharing ratio

Question-2:
expected profit
B. It is permissible for the Rab al-Mal to obtain a guarantee from the Mudarib to receive a profit
C. It is permissible for the Rab al-Mal to obtain a guarantee from the Mudarib against any loss it
may suffer
D. It is permissible for the Rab al-Mal to obtain a guarantee from the Mudarib against loss it may
suffer due to negligence, misconduct or breach of contract by Mudarib
Question-3:
A Rab al-Mal have invested CU 1,000 based on a Mudarabah contract. The expected profit from the
investment was CU 150. If the Mudarabah investment suffer a loss of CU 50 due to Mudarib’s
negligence, misconduct or breach of contractual terms, then how much he will be liable to pay to
the Rab al-Mal in addition to the remaining balance of the Mudarabah capital?
A. CU 50
B. CU 100
C. CU 150
D. CU 200

Question-4:
Which of the following is not permissible in an unrestricted Mudarabah?
A. For the Rab al-Mal not to impose any restriction over Mudarib
B. For the Rab al-Mal to trust on the expertise of the Mudarib
C. For the Mudarib to invest in not-for-profit businesses
D. For the Mudarib to adhere to customs in management of Mudarabah investment

Question-5:
A. Mudarib to sign a Mudarabah contract with the agent of Rab al-Mal
B. Rab al-Mal to sign a Mudarabah contract with the agent of Mudarib
C. The agent of Mudarib to sign a Mudarabah contract with the agent of Rab al-Mal
D. All of the above

Question-6:
Which of the following will not be included in a memorandum of understanding for Mudarabah
contract?
A. Restricted or unrestricted mudarabah
B. Profit sharing ratio
C. Loss sharing ratio
D. Type of guarantee against Mudarib’s breach of contract

Question-7:
investment, the market value of the tangible asset was CU 1,500, but the contracting parties agreed
on value of CU 1,600. However, at the termination of the Mudarabah, the market value of the
tangible asset became CU 2,000.

A. CU 1,000
B. CU 2,500
C. CU 2,600
D. CU 3,000

Question-8:
investment, the market value of the tangible asset was CU 1,500. However, at the termination of the
Mudarabah, the market value of the tangible asset became CU 2,000.

A. CU 1,000
B. CU 2,500
C. CU 2,600
D. CU 3,000
Question-9:
Which of the following is not acceptable regarding Mudarabah capital?
A. For Rab al-Mal to deposit the Mudarabah capital in Mudarib’s bank account
B. For Rab al-Mal to deliver certain trading goods (that the parties agreed to be part of Mudarabah
capital) at the Mudarib’s warehouse
C. For Rab al-Mal to relinquish its receivable claim that was due by Mudarib and treat that as
Mudarabah capital
D. For Rab al-Mal to put the Mudarabah capital fully at disposal of the Mudarib

Question-10:
Which of the following is not an acceptable form of Mudarabah capital?
A. Cash
B. Debt owed to Rab al-Mal
C. Trading goods
D. Machinery

Question-11:
A. Distribution of profit based on a pre-agreed profit sharing ratio
B. For Mudarib to receive 30% of the profit and for Rabb al-Mal to receive 70% of the profit
C. For Mudarib to receive CU 400 and for Rab al-Mal to receive CU 600 as they respectively
represent 40% and 60% of the profit generated
D. All of the above

Question-12:
Which of the following is not permissible in distribution of Mudarabah profit?
A. For Mudarib to receive minimum CU 1,000, and any remaining profit to be given to Rab al-Mal
B. For Rab al-Mal to receive minimum CU 1,000, and any remaining profit to be given to Mudarib
C. For Rab al-Mal to receive minimum 10% of the capital invested as profit, and any remaining
profit to be given to Mudarib
D. All of the above

Question-13:
On 01 January 2021, a Rab al-Mal provided CU 1,000 as capital of a Mudarabah. The profit sharing
ratio agreed on this date was 70:30 (Rab al-Mal : Mudarib). However, on 15 July 2021 the Mudarib
changed the profit sharing ratio to 75: 25, and notified this to the Rab al-Mal. The Rab al-Mal did
not raise any objection to the change. The performance of the Mudarabah during the period was:
Q1: Profit CU 50
Q2: Profit CU 40
Q3: Profit CU 60
Q4: Profit CU 30
In this scenario, what will be the total amount of profit that the Rab al-Mal will receive in 2021?
A. CU 52.50
B. CU 127.50
C. CU 130.50
D. CU 49.50
Answer-13:
Applicable Profit Sharing Ratio Profit for the Allocation of Profit

Periods
Rab al-Mal Mudarib Period Rab al-Mal Mudarib
Q1 70 30 50 35 15
Q2 70 30 40 28 12
Q3 70 30 60 42 18
Q4 75 25 30 22.50 7.50
Total 180 127.50 52.50
SS 13: Mudarabah
SS 40: Distribution of Profit in Mudarabah-Based Investment Accounts Mezbah Uddin Ahmed
Question-14:
A. For Mudarib to fix the amount of profit that he should receive
B. For Rab al-Mal to fix the amount of profit that he should receive
C. For Mudarib or Rab al-Mal to fix the minimum amount of profit that they should receive

Question-15:
A. For Mudarib to fix the maximum amount of profit that he may receive
B. For Rab al-Mal to fix the maximum amount of profit that he may receive
C. For Mudarib or Rab al-Mal not to receive profit above a certain amount
D. All of the above

Question-16:
It is allowed in a Mudarabah contract to set a celling in profit distribution to any of the parties, but it
is not allowed to set a floor in profit distribution.

A. Ture
B. False

Question-17:
ratio between the Rab al-Mal and Mudarib. If the Mudarabah suffer a loss of CU 150, how much will
be returned to the Rab al-Mal at the end of the Mudarabah?
A. CU 1,000
B. CU 850
C. CU 150
D. Nil

Question-18:
ratio between the Rab al-Mal and Mudarib. The performance of the Mudarabah over its tenure of
three years was as follows:
Year-1: Loss CU 100
Year-2: Loss CU 80
How much the Rab al-Mal will receive in Year-3 as profit from the Mudarabah?
A. CU 700
B. CU 250
C. CU 175
D. CU 49

Answer-18:
Year 1 2 3
Capital invested 1,000 - -
Beginning balance - 900 820
Profit / (Loss) for the period (100) (80) 250
Ending balance 900 820 1,070
Distribution of profit No No Yes
Profit to Rab al-Mal - - 49

Profit to Mudarib - - 21
SS 13: Mudarabah
Question-19:
A Rab al-Mal provided CU 1,000 as capital of a Mudarabah. Any profit will be distributed at 70:30 ratio
between the Rab al-Mal and Mudarib. The performance (i.e., operating profit or loss) of the Mudarabah over
its tenure of three years was as follows :
Year-3: Loss CU 200
At the end of Year-3, at liquidation of the Mudarabah, the Mudarib realized CU 1,200 by selling the Mudarabah
assets. There was no actual or constructive valuation before this date.
For Rab al-Mal, what will be the final entitlement to profit from this Mudarabah?
A. CU 140
B. CU 140.70
C. CU 147
D. Nil

Answer-19:
Year-3: Actual valuation

Profit from Year-1 150
Profit from Year-2 60
Loss from Year-3 (200)
Net profit / (loss) 10
Gain from liquidation of Mudarabah
200
(1,200 – 1,000)
Net profit / (loss) from Mudarabah 210
Final entitlement to profit:

Rab al-Mal (210 x 70%) 147
Mudarib (210 x 30%) 63
SS 13: Mudarabah
Question-20:
ratio between the Rab al-Mal and Mudarib.
The Mudarib comingled its own capital of CU 2,000 with the capital of Rab al-Mal while making the
investment. If the profit from the investment is CU 250, how much profit the Rab al-mal will
receive?
A. CU 53.57
B. CU 75
C. CU 125
D. CU 250

Answer-20:
(4) Profit attributable to Party B:

(1) Mudarabah capital: CU 5,000
Profit sharing ratio: 70:30 As capital provider (CU 250 x 28.57%) CU 71.43
Party A As Mudarib ((CU 250 x 71.43%) x 30%) CU 53.57

Party B
(5) Profit attributable to Party A:
Total CU 125
((CU 250 x 71.43%) x 70%) = CU 125
(2) Amount invested by Party B:

As Mudarib CU 5,000 71.43%
(3) Total Profit: CU 250
Own capital CU 2,000 28.57%
Total CU 7,000 100%
Investment
SS 13: Mudarabah
Question-21:
Which of the following is not allowed in a Mudarabah?
A. For Mudarib to charge a fee to Rab al-Mal for hiring someone to do the tasks of Mudarib
B. To make charitable donations from the Mudarabah fund without Rab al-Mal’s consent or not for
obvious benefit of the Mudarabah
C. To give loan from the Mudarabah fund without Rab al-Mal’s consent or not for obvious benefit
of the Mudarabah
D. All of the above

Question-22:
The total investable fund of an IFI includes CU 100 from shareholders and CU 1,000 from investment
account holders. If the total investment opportunity available to the IFI is only CU 900, assuming
equality in investment is ensured, how much will be invested from the shareholders’ funds and
funds of investment account holders?
A. Shareholders’ funds: CU 450; Funds of investment account holders: CU 450
B. Shareholders’ funds: CU 100; Funds of investment account holders: CU 800
C. Shareholders’ funds: CU 81.82; Funds of investment account holders: CU 818.18

Answer 22:
Shareholders' funds 100

Investment accountholders' funds 1000
Total fund available 1,100
Total investment opportunity available 900

81.82% of total fund available will be invested (900 / 1,100)
Investment will be made from:

Shareholders' funds 81.82 (100 x 81.82%)
Investment accountholders' funds 818.18 (1,000 x 81.82%)
Total 900
SS 13: Mudarabah
Question-23:
An IFI has disclosed that it gives priority to its investment account holders every time it makes an
investment. The total investable fund of the IFI includes CU 200 from shareholders and CU 1,200
from investment account holders. However, total investment opportunity available to the IFI is only
CU 1,250. How much will be invested from the shareholders’ funds and funds of investment account
holders?
A. Shareholders’ funds: CU 200; Funds of investment account holders: CU 1,050
B. Shareholders’ funds: CU 50; Funds of investment account holders: CU 1,200
C. Shareholders’ funds: CU 178.57; Funds of investment account holders: CU 1,071.43

Question-24:
Which of the following define a loss in a Mudarabah?
A. If total expense is higher than total income
B. If total income is lower than total expense
C. If there is a depletion of the capital invested
D. All of the above

Question-25:
Which of the following is not permissible in a Mudarabah?
A. To distribute a profit even if the Mudarabah suffer a loss
B. To fully distribute the profit attributable to Rab al-Mal
C. To retain part of the profit attributable to Rab al-Mal and invest that as part of Mudarabah
capital
D. To provide advance profit to the Rab al-Mal

Question-26:
It is permissible for the contracting parties in a Mudarabah to allocate a portion of the profit to a
third party. This third party must be –
A. A charitable entity
B. Someone with blood relationship with Rab al-mal
C. Someone with blood relationship with Mudarib

Question-27:
In a Mudarabah contract, what shall be the treatment for the relinquished portion of PER and IRR of
the exiting party?
A. It shall be treated as an income for Mudarib
B. It shall be added to the equity of Mudarib
C. It shall be devoted to charitable purposes
D. It shall be deposited in government treasury

Question-28:
Which of the following is the objective of a Mudarabah partnership?
A. To do charitable work
B. One party to do charity and other party to receive profit
C. One party to receive profit and other party to bear loss
D. Both parties to share profit

SS(14) Documentary Credit
Question-1:
It is permissible for the institution to charge a fee for amending the documentary credit, except for
amendment involving a rescheduling of the duration of the credit facility. It is, therefore, not
permissible for the institution to charge except the actual expenses incurred, in which case it will be
a definite sum and not a percentage.
A. True
B. False

Question-2:
A. It is permissible to provide institutional guarantee to the importer

B. It is permissible for the seller to stipulate in a sell contract that payment be made through
documentary credit.
C. It is not permissible for the institution to undertake transactions in documentary credit when
such credit pertains to goods that are prohibited by the Shariah
D. All of the above

Question-3:
Which of the following is permissible regarding the fee charged by the institution for documentary
credit?
A. To charge actual expenses incurred in issuing documentary credit

B. To charge actual expenses as a percentage of the credit facility
C. To vary the fee based on the duration of the credit
D. To increase the fee for documentary credit by taking into account the guarantee provided

Question-1:
It is permissible for the institution to charge a fee for amending the documentary credit, except for
amendment involving a rescheduling of the duration of the credit facility. It is, therefore, not
permissible for the institution to charge except the actual expenses incurred, in which case it will be
a definite sum and not a percentage.
A. True
B. False

Question-2:
A. It is permissible to provide institutional guarantee to the importer

B. It is permissible for the seller to stipulate in a sell contract that payment be made through
documentary credit.
C. It is not permissible for the institution to undertake transactions in documentary credit when
such credit pertains to goods that are prohibited by the Shariah
D. All of the above

Question-3:
Which of the following is permissible regarding the fee charged by the institution for documentary
credit?
A. To charge actual expenses incurred in issuing documentary credit

B. To charge actual expenses as a percentage of the credit facility
C. To vary the fee based on the duration of the credit
D. To increase the fee for documentary credit by taking into account the guarantee provided

SS(15) Jualah
Question-1:
Ju’ala is distinguished from Ijarah on the following grounds:
A. Ju’ala is valid despite uncertainty of work deeming the determination of the required result by
the offeror as sufficient.
B. Ju’ala does not require acceptance.
C. entitlement to compensation depends on completion of work and delivery of result.
D. All the above.

SS(15) Jualah
Question-1:
Ju’ala is distinguished from Ijarah on the following grounds:
A. Ju’ala is valid despite uncertainty of work deeming the determination of the required result by
the offeror as sufficient.
B. Ju’ala does not require acceptance.
C. entitlement to compensation depends on completion of work and delivery of result.
D. All the above.

SS(16) Commercial Papers
Question-1:
A. It is not permissible to use a bill of exchange or promissory note in transactions that require
possession
B. The institution is entitled to commission for collection of the amount of commercial papers
C. It is permitted to pay an amount that is less than the value of the commercial paper to the first
beneficiary if it is prior to the date of maturity
D. All of the above

Question-2:
All parties whose signature appear on the commercial paper including the drawer, the endorser and
the guarantor are jointly responsible to pay to the holder the value of the paper in accordance with
rules of liability, thus, the holder is entitled to have recourse to them severally or jointly after the
refusal of the drawer (or the issuer in case of a promissory note) to pay.

A. True
B. False

Question-1:
A. It is not permissible to use a bill of exchange or promissory note in transactions that require
possession
B. The institution is entitled to commission for collection of the amount of commercial papers
C. It is permitted to pay an amount that is less than the value of the commercial paper to the first
beneficiary if it is prior to the date of maturity
D. All of the above

Question-2:
All parties whose signature appear on the commercial paper including the drawer, the endorser and
the guarantor are jointly responsible to pay to the holder the value of the paper in accordance with
rules of liability, thus, the holder is entitled to have recourse to them severally or jointly after the
refusal of the drawer (or the issuer in case of a promissory note) to pay.

A. True
B. False

SS(17) Investment Sukuk
Question-1:
Which of the following statements is incorrect?
A. Investment sukuk represent a common share in the ownership of the assets made available for
investment
B. Investment sukuk represent a debt owed to the issuer by the certificate holder
C. Investment sukuk are certificates of equal value issued in the name of the owner or bearer
D. Investment sukuk establishes claim of the certificate owner over the financial rights and
obligations represented by the certificate

Question-2:
Which of the following is not a negotiable sukuk?
A. Mudarabah
B. Musharakah
C. Salam
D. Investment agency

Question-1:
A. Investment sukuk represent a common share in the ownership of the assets made available for
investment
B. Investment sukuk represent a debt owed to the issuer by the certificate holder
C. Investment sukuk are certificates of equal value issued in the name of the owner or bearer
D. Investment sukuk establishes claim of the certificate owner over the financial rights and
obligations represented by the certificate

Question-2:
Which of the following is not a negotiable sukuk?
A. Mudarabah
B. Musharakah
C. Salam
D. Investment agency

SS(18) Possession (Qabd)
Question-1:
It is not permissible to deal in a banker’s cheque or certified cheque in something in which
possession (Qabd) is stipulated, such as contracts of sarf (transaction involving exchange of
currencies), purchase or gold or silver using it.
A. True
B. False

SS(18) Possession (Qabd)
Question-1:
It is not permissible to deal in a banker’s cheque or certified cheque in something in which
possession (Qabd) is stipulated, such as contracts of sarf (transaction involving exchange of
currencies), purchase or gold or silver using it.
A. True
B. False

SS(19) Loan (Qard)
Question-1:
Which of the following is correct regarding a Qard contract?
A. The borrower is free to use the item as it wants

B. The borrower needs permission of the lender prior to using the item
C. The borrower is allowed to use the item if it can be returned to the lender in the original
condition
D. The borrower is not allowed to use the item at all

SS(19) Loan (Qard)
Question-2:
Knowing that the Islamic bank cannot charge a profit over the principal amount in a Qard-based
financing, which of the following is permissible?
A. To ask the customer to give a Hibah to the bank

B. To increase the account opening or other charges
C. To combine the Qard contract with another profit generating contract

SS(19) Loan (Qard)
Question-3:
Islamic bank is the borrower when a customer deposit money in a current account. Knowing that it
is not permissible for the borrower to offer excess benefit to the lender, is it permissible for the
Islamic bank to provide cheque book and ATM services to the customer without any compensation?
A. Yes
B. No

SS(19) Loan (Qard)
Question-4:
Which of the following is correct in a qard contract?
A. The lender must have legal capacity to donate

B. The borrower must have legal capacity to undertake transactions
C. The contract of qard may include the word “qard”, “salaf” or any other word or act that conveys
the meaning of qard
D. All of the above

SS(19) Loan (Qard)
Question-5:
A. The borrower become the owner of the subject matter of qard through possession
B. The borrower is liable to return the same asset he borrowed
C. The monetary value of the subject matter of qard must be known
D. All of the above

SS(19) Loan (Qard)
Question-6:
A. The borrower is liable to return a similar subject matter

B. The borrower become the owner of the subject matter of qard through possession
C. Qard is applicable to fungible assets
D. All of the above

SS(19) Loan (Qard)
Question-7:
Which one of the following is prohibited if stipulated in a qard contract?
A. The lender will receive an excess over the qard amount

B. The lender will receive a superior quality item as repayment
C. The lender will receive an intangible benefit in addition to repayment
D. All of the above

SS(19) Loan (Qard)
Question-8:
Which one of the following is correct in a qard contract?
A. The lender is allowed to seek an excess over the qard amount in exchange of extending the
repayment period
B. The lender is allowed to seek an excess over the qard amount provided that it is part of
customary practice
C. The lender is allowed to seek an excess over the qard amount provided that it is not in writing

SS(19) Loan (Qard)
Question-9:
Which one of the following is permissible to stipulate in a qard contract?
A. The loan amount will be returned at the place where it was delivered
B. The loan amount will be returned at a place other than where it was delivered, provided that it
does not benefit the lender
C. The loan amount will be returned at a place other than where it was delivered, provided that it
does not harm the lender
D. The loan amount will be returned at a place other than where it was delivered, provided that it
does not benefit the borrower
SS(19) Loan (Qard)
Question-10:
A. The loan amount will be returned at a place other than where it was delivered, provided that it
does not harm any of the parties
does not benefit any of the parties

SS(19) Loan (Qard)
Question-11:
A. The borrower must cease any relation with the lender during the period of qard
B. The borrower cannot give any gift to the lender in any circumstances during the period of qard
C. The borrower cannot enter into a sale transaction with the lender during the period of qard

SS(19) Loan (Qard)
Question-12:
Which of the following conditions to be met for an excess over qard to be permissible?
A. It is not stipulated in the contract and it is not part of custom

B. It is not stipulated in the contract and it is not in cash
C. It is not stipulated in the contract and it is not in kind
D. It is not stipulated in the contract and it is not in tangible property

SS(19) Loan (Qard)
Question-13:
Cash facilities, of all types, whether in the form of currency, such as Qard Hasan (free loan),
Musharaka or Mudarabah, or whether in the form of assets (tangible things or material benefits),
such as Murabaha for the purchase orderer and finance lease, create a debt owed from the
contracting party once it obtains them.
A. True
B. False

SS(19) Loan (Qard)
Question-14:
Which of the following is not correct?
A. The ownership of asset is transferred from lender to borrower in a qard contract

B. There must be an offer and acceptance in a qard contract
C. The contract of qard must include the word “qard”
D. Qard is applicable to fungible assets only

SS(19) Loan (Qard)
Question-1:
Which of the following is correct regarding a Qard contract?
A. The borrower is free to use the item as it wants

B. The borrower needs permission of the lender prior to using the item
C. The borrower is allowed to use the item if it can be returned to the lender in the original
condition
D. The borrower is not allowed to use the item at all

SS(19) Loan (Qard)
Question-2:
Knowing that the Islamic bank cannot charge a profit over the principal amount in a Qard-based
financing, which of the following is permissible?
A. To ask the customer to give a Hibah to the bank

B. To increase the account opening or other charges
C. To combine the Qard contract with another profit generating contract

SS(19) Loan (Qard)
Question-3:
Islamic bank is the borrower when a customer deposit money in a current account. Knowing that it
is not permissible for the borrower to offer excess benefit to the lender, is it permissible for the
Islamic bank to provide cheque book and ATM services to the customer without any compensation?
A. Yes
B. No

SS(19) Loan (Qard)
Question-4:
A. The lender must have legal capacity to donate

B. The borrower must have legal capacity to undertake transactions
C. The contract of qard may include the word “qard”, “salaf” or any other word or act that conveys
the meaning of qard
D. All of the above

SS(19) Loan (Qard)
Question-5:
A. The borrower become the owner of the subject matter of qard through possession
B. The borrower is liable to return the same asset he borrowed
C. The monetary value of the subject matter of qard must be known
D. All of the above

SS(19) Loan (Qard)
Question-6:
A. The borrower is liable to return a similar subject matter

B. The borrower become the owner of the subject matter of qard through possession
C. Qard is applicable to fungible assets
D. All of the above

SS(19) Loan (Qard)
Question-7:
Which one of the following is prohibited if stipulated in a qard contract?
A. The lender will receive an excess over the qard amount

B. The lender will receive a superior quality item as repayment
C. The lender will receive an intangible benefit in addition to repayment
D. All of the above

SS(19) Loan (Qard)
Question-8:
A. The lender is allowed to seek an excess over the qard amount in exchange of extending the
repayment period
B. The lender is allowed to seek an excess over the qard amount provided that it is part of
customary practice
C. The lender is allowed to seek an excess over the qard amount provided that it is not in writing

SS(19) Loan (Qard)
Question-9:
A. The loan amount will be returned at the place where it was delivered
does not harm the lender
SS(19) Loan (Qard)
Question-10:
A. The loan amount will be returned at a place other than where it was delivered, provided that it
does not harm any of the parties
does not benefit any of the parties

SS(19) Loan (Qard)
Question-11:
A. The borrower must cease any relation with the lender during the period of qard
B. The borrower cannot give any gift to the lender in any circumstances during the period of qard
C. The borrower cannot enter into a sale transaction with the lender during the period of qard

SS(19) Loan (Qard)
Question-12:
Which of the following conditions to be met for an excess over qard to be permissible?
A. It is not stipulated in the contract and it is not part of custom

B. It is not stipulated in the contract and it is not in cash
C. It is not stipulated in the contract and it is not in kind
D. It is not stipulated in the contract and it is not in tangible property

SS(19) Loan (Qard)
Question-13:
Cash facilities, of all types, whether in the form of currency, such as Qard Hasan (free loan),
Musharaka or Mudarabah, or whether in the form of assets (tangible things or material benefits),
such as Murabaha for the purchase orderer and finance lease, create a debt owed from the
contracting party once it obtains them.
A. True
B. False

SS(19) Loan (Qard)
Question-14:
Which of the following is not correct?
A. The ownership of asset is transferred from lender to borrower in a qard contract

B. There must be an offer and acceptance in a qard contract
C. The contract of qard must include the word “qard”
D. Qard is applicable to fungible assets only

SS(20) Sale of Commodities in Organized Markets
Question-1:
…..are contracts in which both counter-values are deferred with the legal effects of the contracts
taking place at a determined future date, and delivery and possession take place at that time.
A. Spot contract.
B. Forward contracts.
C. Futures commodity contracts.
D. Options contracts.

Question-2:
In Islamic Swap contracts involving two foreign currencies conducted by the Bank’s treasury
management, the Shari’a reviewer should, for the purpose of ascertaining that the transaction is
Shari’a-compliant, ensure that every contract refers to the other one, and that each contract should
include a condition making payment contingent and conditional upon the payment of the loan
amount under the other contract.
A. True
B. False

Question-1:
…..are contracts in which both counter-values are deferred with the legal effects of the contracts
taking place at a determined future date, and delivery and possession take place at that time.
A. Spot contract.
B. Forward contracts.
C. Futures commodity contracts.
D. Options contracts.

Question-2:
In Islamic Swap contracts involving two foreign currencies conducted by the Bank’s treasury
management, the Shari’a reviewer should, for the purpose of ascertaining that the transaction is
Shari’a-compliant, ensure that every contract refers to the other one, and that each contract should
include a condition making payment contingent and conditional upon the payment of the loan
amount under the other contract.
A. True
B. False

SS(21) Financial Paper (Shares and Bonds)
Question-1:
For a share to be tradable, the non-ribawi assets within the underlying assets of the share should be
at least:
A. One-third
B. Two-third
C. Half
D. More than half

SS(21) Financial Paper (Shares and Bonds)
Question-1:
For a share to be tradable, the non-ribawi assets within the underlying assets of the share should be
at least:
A. One-third
B. Two-third
C. Half
D. More than half

SS(22) Concession Contracts
Question-1:
The concession license is a financial rights and its owner may dispose it of through selling, leasing,
mortgaging, partnership or securitization.

A. True
B. False

SS(22) Concession Contracts
Question-1:
The concession license is a financial rights and its owner may dispose it of through selling, leasing,
mortgaging, partnership or securitization.

A. True
B. False

SS(23) Agency and the Act of an Uncommissioned
Agent (Fodooli)
Question-1:
In which of the following cases an agency become binding?
A. When agency is an unpaid agency

B. When the agent signed the agency contract
C. When the agency involves rights of others
D. When the agent received advanced payment from the principal

SS(23) Agency and the Act of an Uncommissioned
Agent (Fodooli)
Question-1:
In which of the following cases an agency become binding?
A. When agency is an unpaid agency

B. When the agent signed the agency contract
C. When the agency involves rights of others
D. When the agent received advanced payment from the principal

SS(24) Syndicated Financing
Question-1:
A. It is permissible for an Islamic bank to do syndicated financing with a conventional bank
B. It is permissible for a conventional bank to be the lead arranger in a syndicated financing
C. It is permissible for an Islamic bank to do syndicated financing with a conventional bank in the
same project
D. All of the above

Question-2:
Which of the following is an acceptable contractual form for the lead manager in syndicated
financing?
A. Mudarib in Mudarabah
B. Partner in Musharakah
C. Agent in Wakalah
D. All of the above

Question-1:
A. It is permissible for an Islamic bank to do syndicated financing with a conventional bank
B. It is permissible for a conventional bank to be the lead arranger in a syndicated financing
C. It is permissible for an Islamic bank to do syndicated financing with a conventional bank in the
same project
D. All of the above

Question-2:
Which of the following is an acceptable contractual form for the lead manager in syndicated
financing?
A. Mudarib in Mudarabah
B. Partner in Musharakah
C. Agent in Wakalah
D. All of the above

SS(25) Combination of Contracts
Question-1:
Forms of combined contracts include:
A. Combination of contracts without stipulation of a contract as condition in another and without

pre-arrangement.
B. Combination of contracts with stipulation of a contract as condition in another and without
prearrangement.
C. Pre-arranged combination of contracts without stipulation of a contract as condition in another.
D. All of the above.

SS(25) Combination of Contracts
Question-1:
Forms of combined contracts include:
A. Combination of contracts without stipulation of a contract as condition in another and without

pre-arrangement.
B. Combination of contracts with stipulation of a contract as condition in another and without
prearrangement.
C. Pre-arranged combination of contracts without stipulation of a contract as condition in another.
D. All of the above.

SS(26) Islamic Insurance
Question-1:
The relationship, in Islamic insurance, between the company and the policyholders’ funds, in regard
to the investment of the fund’s assets, is:
A. Musharaka
B. Agency
C. Mudarabah
D. B and C

SS(26) Islamic Insurance
Question-1:
The relationship, in Islamic insurance, between the company and the policyholders’ funds, in regard
to the investment of the fund’s assets, is:
A. Musharaka
B. Agency
C. Mudarabah
D. B and C

SS(27) Indices
Question-1:

SS(28) Banking Services in Islamic Banks
Question-1:
An IFI is allowed to impose fee for services rendered by it as a –
A. Lump sum amount
B. Percentage of the value of the service
C. More than actual costs incurred in providing the service
D. All of the above

Question-2:
Which of the following services allow an IFI to impose a fee?
A. For providing underwriting service
B. For arranging a third-party to be the underwriter
C. Both of the above

Question-3:
A. An Islamic bank is allowed to provide free of cost additional services to the current and
investment account holders without any restrictions
B. An Islamic bank is allowed to provide additional services to the current and investment account
holders by charging fees for such services
C. An Islamic bank is allowed to provide free of cost additional services to the current and
investment account holders only if it was not a precondition or constitute a traditionally
observed prerequisite for opening the account

Question-4:
A. The Islamic bank is responsible for ensuring safety of the vault
B. The Islamic bank is responsible for guaranteeing the safety of items kept in the vault
C. The Islamic bank is not responsible for guaranteeing the safety of the item kept in the vault,
except in case of misconduct or negligence

Question-1:
An IFI is allowed to impose fee for services rendered by it as a –
A. Lump sum amount
B. Percentage of the value of the service
C. More than actual costs incurred in providing the service
D. All of the above

Question-2:
Which of the following services allow an IFI to impose a fee?
A. For providing underwriting service
B. For arranging a third-party to be the underwriter

Question-3:
A. An Islamic bank is allowed to provide free of cost additional services to the current and
investment account holders without any restrictions
B. An Islamic bank is allowed to provide additional services to the current and investment account
holders by charging fees for such services
C. An Islamic bank is allowed to provide free of cost additional services to the current and
investment account holders only if it was not a precondition or constitute a traditionally
observed prerequisite for opening the account

Question-4:
A. The Islamic bank is responsible for ensuring safety of the vault
B. The Islamic bank is responsible for guaranteeing the good condition of items kept in the vault
C. The Islamic bank is not responsible for guaranteeing the good condition of the item kept in the
vault, except in case of misconduct or negligence

SS(29) Stipulations and Ethics of Fatwa in the
Institutional Framework
Question-1:
Which of the following is correct regarding issuing Fatwa to Islamic financial institutions?
A. It requires competence in all areas of Fiqh
B. It requires competence in the legal system
C. It requires competence in financial transactions performed by institutions
D. All of the above

Question-2:
The conditions on Mufti (Fatwa issuer) include:
A. To be well versed in Fiqh (Islamic Jurisprudence),well informed of the contributions of diligent

Fiqh scholars, and has the ability to use the Shari’ah-accepted methods of deriving reasonable
rulings on emerging issues. He shall also be known for his discernment, cautiousness and
knowledge about the circumstances and traditions of people, and should always remain alert
against the different means of human misbehavior.
B. To be competent in Fiqh and particularly in the area of modern financial transactions.
C. A+B

Question-1:
Which of the following is correct regarding issuing Fatwa to Islamic financial institutions?
A. It requires competence in all areas of Fiqh
B. It requires competence in the legal system
C. It requires competence in financial transactions performed by institutions
D. All of the above

Question-2:
The conditions on Mufti (Fatwa issuer) include:
A. To be well versed in Fiqh (Islamic Jurisprudence),well informed of the contributions of diligent

Fiqh scholars, and has the ability to use the Shari’ah-accepted methods of deriving reasonable
rulings on emerging issues. He shall also be known for his discernment, cautiousness and
knowledge about the circumstances and traditions of people, and should always remain alert
against the different means of human misbehavior.
B. To be competent in Fiqh and particularly in the area of modern financial transactions.
C. A+B

SS(30) Monetization (Tawarruq)
Question-1:
Which of the following is a requirement for a Monetization (Tawarruq) to be valid?
A. The commodity must be made available at the time of signing the contract
B. The commodity must be sourced from local suppliers
C. The commodity must be well identified so as to become distinct from the other assets of the
seller
D. All of the above

Question-2:
Which of the following is a permissible type of possession for a Monetization (Tawarruq) to be
valid?
A. Actual possession
B. Constructive possession without any restriction
C. Constructive possession without any further condition or procedure for receiving the commodity
D. All of the above

Question-3:
Which of the following is true regarding permissibility of Monetization (Tawarruq)?
A. This is not a mode of investment or financing
B. It is permitted when there is a need for it
C. The Institution shall resort to monetization only when it faces the danger of a liquidity shortage
that could interrupt the flow of its operations and cause losses for its clients
D. All of the above

Question-4:
...refers to the process of purchasing a commodity for a deferred price (determined through
Musawama (bargaining) or Murabaha (mark-up sale) and selling it to a third party for a sport price
so as to obtain cash.
A. Monetization
B. ‘Inah
C. Parallel Salam
D. Deferred sale

Question-5:
In Tawarruq transactions executed involving commodities and metals on the international market,
the Shari’a reviewer should ensure that all the details provided in the financing application and the
deferred sale contract between the institution and the customer and the customer’s signature on
the forms have been duly completed on a date prior to the date of sale of the commodities in cash
to another party (a third party), and that the commodities should be duly specified by virtue of an
ownership or title certificate or storage receipts.
A. True
B. False
Question-1:
Which of the following is a requirement for a Monetization (Tawarruq) to be valid?
A. The commodity must be made available at the time of signing the contract
B. The commodity must be sourced from local suppliers
C. The commodity must be well identified so as to become distinct from the other assets of the
seller
D. All of the above

Question-2:
Which of the following is a permissible type of possession for a Monetization (Tawarruq) to be
valid?
A. Actual possession
B. Constructive possession without any restriction
C. Constructive possession without any further condition or procedure for receiving the commodity
D. All of the above

Question-3:
Which of the following is true regarding permissibility of Monetization (Tawarruq)?
A. This is not a mode of investment or financing
B. It is permitted when there is a need for it
C. The Institution shall resort to monetization only when it faces the danger of a liquidity shortage
that could interrupt the flow of its operations and cause losses for its clients
D. All of the above

Question-4:
...refers to the process of purchasing a commodity for a deferred price (determined through
Musawama (bargaining) or Murabaha (mark-up sale) and selling it to a third party for a sport price
so as to obtain cash.
A. Monetization
B. ‘Inah
C. Parallel Salam
D. Deferred sale

Question-5:
In Tawarruq transactions executed involving commodities and metals on the international market,
the Shari’a reviewer should ensure that all the details provided in the financing application and the
deferred sale contract between the institution and the customer and the customer’s signature on
the forms have been duly completed on a date prior to the date of sale of the commodities in cash
to another party (a third party), and that the commodities should be duly specified by virtue of an
ownership or title certificate or storage receipts.
A. True
B. False
SS(31) Controls on Gharar in Financial
Transactions
Question-1:
Which of the following forms of Gharar invalidates a contract?
A. Minor
B. Medium
C. Excessive
D. All of the above

Transactions
Question-2:
A. Gharar affects exchange contracts
B. Gharar affects donation contracts
C. Gharar affects lease contracts

Transactions
Question-3:
Which of the following is an example excessive Gharar?
A. Signing a lease contract for an unspecified period
B. Sale of a house to a buyer who has not seen its foundation
C. Commodities that cannot be known unless broken
D. Profit to be earned from a Mudarabah investment

Transactions
Question-4:
Which of the following is an example of excessive Gharar?
A. Sale of a Salam commodity that is not usually available on date of delivery
B. Leasing the house for one month while months differ in length
C. Leasing of fruit trees
D. All of the above

Transactions
Question-5:
Which of the following statements is correct?
A. Gharar in a secondary matter does not affect a contract
B. Gharar in a secondary matter bear the same ruling as for the primary matter
C. Excessive Gharar cannot be ignored in the case of Shariah-recognizable need
D. Medium Gharar bear the same rulings as for excessive Gharar

Transactions
Question-6:
Which of the following is not an example of invalid contract?
A. A sale contract includes two prices, CU 1,000 if paid in one month time or CU 1,200 if paid after
one month.
B. A sale contract where the seller throws a stone on goods, and the buyer has to accept the item
on which the stone falls
C. A sale contract where the sold commodity is randomly selected by machine that uses an
advanced programming
D. A sale contract where the sale price is determined as market price without specifying the exact
amount
Transactions
Question-7:
A. Gharar is not permissible in a Rahn (Mortgage) contract
B. Gharar is not permissible in a Kafalah (Suretyship) contract
C. Gharar is not permissible in a sale contract
D. All of the above

Transactions
Question-1:
Which of the following forms of Gharar invalidates a contract?
A. Minor
B. Medium
C. Excessive
D. All of the above

Transactions
Question-2:
A. Gharar affects exchange contracts
B. Gharar affects donation contracts
C. Gharar affects lease contracts

Transactions
Question-3:
Which of the following is an example excessive Gharar?
A. Signing a lease contract for an unspecified period
B. Sale of a house to a buyer who has not seen its foundation
C. Commodities that cannot be known unless broken
D. Profit to be earned from a Mudarabah investment

Transactions
Question-4:
Which of the following is an example of excessive Gharar?
A. Sale of a Salam commodity that is not usually available on date of delivery
B. Leasing the house for one month while months differ in length
C. Leasing of fruit trees
D. All of the above

Transactions
Question-5:
A. Gharar in a secondary matter does not affect a contract
B. Gharar in a secondary matter bear the same ruling as for the primary matter
C. Excessive Gharar cannot be ignored in the case of Shariah-recognizable need
D. Medium Gharar bear the same rulings as for excessive Gharar

Transactions
Question-6:
Which of the following is not an example of invalid contract?
A. A sale contract includes two prices, CU 1,000 if paid in one month time or CU 1,200 if paid after
one month.
B. A sale contract where the seller throws a stone on goods, and the buyer has to accept the item
on which the stone falls
C. A sale contract where the sold commodity is randomly selected by machine that uses an
advanced programming
D. A sale contract where the sale price is determined as market price without specifying the exact
amount
Transactions
Question-7:
A. Gharar is not permissible in a Rahn (Mortgage) contract
B. Gharar is not permissible in a Kafalah (Suretyship) contract
C. Gharar is not permissible in a sale contract
D. All of the above

SS(32) Arbitration
Question-1:
‘It is permissible to impose a limitation on the arbitrators to issue their verdict in view of a certain
school of fiqh.’

A. True
B. False

SS(32) Arbitration
Question-2:
The following statements are regarding arbitration:
i. The arbitration decision should not necessarily be issued in the presence of the two parties of
the dispute
ii. The arbitration decision should not necessarily meet the consent of the two parties of the
dispute.
iii. The arbitrator does not have the right to retreat from his verdict, unless committed a mistake.
Which of the above statements is correct?
A. (i) and (iii)

B. (i) and (ii)
C. (ii) and (iii)
D. (i), (ii) and (iii)

SS(32) Arbitration
Question-3:
In principle, the arbitrator –
A. shall be a legal person
B. shall be a natural person
C. shall not receive any remuneration
D. shall be a Muslim

SS(32) Arbitration
Question-1:
‘It is permissible to impose a limitation on the arbitrators to issue their verdict in view of a certain
school of fiqh.’

A. True
B. False

SS(32) Arbitration
Question-2:
The following statements are regarding arbitration:
i. The arbitration decision should not necessarily be issued in the presence of the two parties of
the dispute
ii. The arbitration decision should not necessarily meet the consent of the two parties of the
dispute.
iii. The arbitrator does not have the right to retreat from his verdict, unless committed a mistake.
Which of the above statements is correct?
A. (i) and (iii)

B. (i) and (ii)
C. (ii) and (iii)
D. (i), (ii) and (iii)

SS(32) Arbitration
Question-3:
In principle, the arbitrator –
A. shall be a legal person
B. shall be a natural person
C. shall not receive any remuneration
D. shall be a Muslim

SS(33) Waqf
Question-1:
If a legally competent beneficiary rejects the Waqf –
A. The Waqf become invalid
B. The Waqf remain valid

SS(33) Waqf
Question-2:
If the described beneficiaries no longer exist –
A. The Waqf will also cease to exist
B. The Waqf will continue to exist

SS(33) Waqf
Question-3:
Which of the following is a compulsory requirement in forming a Waqf?
A. The beneficiaries must be present at the formation of Waqf
B. The beneficiaries must provide their consent for formation of the Waqf
C. The Waqf must serve Shariah permissible causes
D. All of the above

SS(33) Waqf
Question-4:
Which of the following is permissible if the Waqf is for usufruct and the Waqif has acquired it
through rent?
A. For the Waqif to sub-lease the asset and distribute the rent to beneficiaries
B. For the Waqif to sub-lease the asset even if the owner of the property does not allow it
C. For the Waqif to sub-lease the asset for a longer tenure than the tenure of the first lease
D. All of the above

SS(33) Waqf
Question-5:
Which of the following is not a permissible act of a Waqf superintendent?
A. To invest the Waqf assets based on a Mudarabah contract
B. To invest the Waqf assets based on a Wakalah contract
C. To lease the Waqf assets based on a Ijarah Muntahia Bittamleek contract
D. All of the above

SS(33) Waqf
Question-6:
Which of the following is not a permissible reason to borrow for the Waqf?
A. To maintain the Waqf assets
B. To spend on the beneficiaries of the Waqf
C. To pay wages if the Waqf does not have sufficient fund
D. To pay for financial commitments if the Waqf does not have sufficient fund

SS(33) Waqf
Question-7:
In Istibdal (Exchange) of Waqf Assets, the following conditions must be adhered to:
A. There should be no excessive injustice in the sale price.

B. Istibdal should meet the satisfaction and interest of the Waqf.
C. Istibdal should be permitted by the judiciary.
D. All of the above

SS(33) Waqf
Question-1:
If a legally competent beneficiary rejects the Waqf –
A. The Waqf become invalid
B. The Waqf remain valid

SS(33) Waqf
Question-2:
If the described beneficiaries no longer exist –
A. The Waqf will also cease to exist
B. The Waqf will continue to exist

SS(33) Waqf
Question-3:
Which of the following is a compulsory requirement in forming a Waqf?
A. The beneficiaries must be present at the formation of Waqf
B. The beneficiaries must provide their consent for formation of the Waqf
C. The Waqf must serve Shariah permissible causes
D. All of the above

SS(33) Waqf
Question-4:
Which of the following is permissible if the Waqf is for usufruct and the Waqif has acquired it
through rent?
A. For the Waqif to sub-lease the asset and distribute the rent to beneficiaries
B. For the Waqif to sub-lease the asset even if the owner of the property does not allow it
C. For the Waqif to sub-lease the asset for a longer tenure than the tenure of the first lease
D. All of the above

SS(33) Waqf
Question-5:
Which of the following is not a permissible act of a Waqf superintendent?
A. To invest the Waqf assets based on a Mudarabah contract
B. To invest the Waqf assets based on a Wakalah contract
C. To lease the Waqf assets based on a Ijarah Muntahia Bittamleek contract
D. All of the above

SS(33) Waqf
Question-6:
Which of the following is not a permissible reason to borrow for the Waqf?
A. To maintain the Waqf assets
B. To spend on the beneficiaries of the Waqf
C. To pay wages if the Waqf does not have sufficient fund
D. To pay for financial commitments if the Waqf does not have sufficient fund

SS(33) Waqf
Question-7:
In Istibdal (Exchange) of Waqf Assets, the following conditions must be adhered to:
A. There should be no excessive injustice in the sale price.

B. Istibdal should meet the satisfaction and interest of the Waqf.
C. Istibdal should be permitted by the judiciary.
D. All of the above

SS(34) Hiring of Persons
Question-1:
In the Ijarah of persons, it may be stipulated that the remaining installments will fall due in case the
lessee does not pay the wage, and in this case:
A. The worker is not entitled to the wage which has been accelerated unless he performs the
work for the entire Ijarah period.
B. The worker shall have the right to take the wage, because it has become his entitlement.
C. The worker must deduct part of the rent in favour of the lessee against accelerating payment
of the entire rent.
D. This contract is considered null and void.
SS(34) Hiring of Persons
Question-1:
In the Ijarah of persons, it may be stipulated that the remaining installments will fall due in case the
lessee does not pay the wage, and in this case:
A. The worker is not entitled to the wage which has been accelerated unless he performs the
work for the entire Ijarah period.
B. The worker shall have the right to take the wage, because it has become his entitlement.
C. The worker must deduct part of the rent in favour of the lessee against accelerating payment
of the entire rent.
D. This contract is considered null and void.
SS(35) Zakah
Question-1:
In which of the following cases it is obligatory for an institution to pay Zakah?
A. Required by a Zakah law
B. Resolution passed in the general assembly
C. Stipulated in the articles of associaiton
D. All of the above

SS(35) Zakah
Question-2:
A. For an institution to accept agency to pay Zakah on behalf of others
B. For an institution to distribute Zakah through a Zakah agency
C. For an institution to coordinate with its subsidiary to avoid double payment of Zakah
D. All of the above

SS(35) Zakah
Question-3:
In which of the following cases there will not be any Zakah obligation on the institution?
A. If liabilities are greater than assets
B. If assets are greater than liabilities
C. If the institution report a loss
D. All of the above

SS(35) Zakah
Question-4:
A. Every types of wealth is zakatable
B. Income generating fixed assets are zakatable
C. Agricultural produce are not zakatable

SS(35) Zakah
Question-5:
Which of the following are zakatable?
A. Gold, silver and currencies
B. Trade articles
C. Agricultural produce
D. All of the above

SS(35) Zakah
Question-6:
Which of the following assets is zakatable?
A. Intangible assets for operational use
B. Spare parts used for operation but kept in warehouse
C. Trademarks

SS(35) Zakah
Question-7:
The zakatable assets of institution includes a real estate property that it leased out to Party A.
• The purchase price of the property: CU 500,000
• The market price of the property as at the Zakah due date: CU 750,000
• The rental income from the property during the year: CU 30,000, out of which CU 10,000 was
spent by the institution for different purposes
Based on the above information, which of the following will be zakatable?

A. CU 750,000
B. CU 500,000
C. CU 30,000
D. CU 20,000

SS(35) Zakah
Question-8:
An Institution based in Malaysia holds cash of MYR 800,000 and USD 500,000. The MYR/USD
exchange rate at different dates are as follows:
• On the day of acquiring the USD: 1 USD = 4 MYR
• On the year beginning day: 1 USD = 4.05 MYR
• On the day when Zakah become due: 1 USD = 4.10 MYR
Based on the above information, how much the institution will pay as Zakah for its cash assets if
Zakah rate of a leap year applies?
A. MYR 71,250
B. MYR 73,444.50
C. MYR 73,458.75
D. MYR 33,507.50

SS(35) Zakah
Question-9:
Islamic Bank A deposited CU 500,000 in an investment account at Islamic Bank B based on a
Mudarabah contract. Islamic Bank B invested the money in a venture where 30% of the assets are
zakatable (e.g., cash and trading goods) and 70% of the assets are not zakatable (e.g., fixed assets
and operational assets).
In the above scenario, what will be the zakatable asset for Islamic Bank A?
A. CU 500,000
B. CU 350,000
C. CU 150,000

SS(35) Zakah
Question-10:
The 2.50% Zakah rate applies for:
A. Solar year
B. Lunar year
C. Leap year
D. Agricultural produce

SS(35) Zakah
Question-1:
In which of the following cases it is obligatory for an institution to pay Zakah?
A. Required by a Zakah law
B. Resolution passed in the general assembly
C. Stipulated in the articles of associaiton
D. All of the above

SS(35) Zakah
Question-2:
A. For an institution to accept agency to pay Zakah on behalf of others
B. For an institution to distribute Zakah through a Zakah agency
C. For an institution to coordinate with its subsidiary to avoid double payment of Zakah
D. All of the above

SS(35) Zakah
Question-3:
In which of the following cases there will not be any Zakah obligation on the institution?
A. If liabilities are greater than assets
B. If assets are greater than liabilities
C. If the institution report a loss
D. All of the above

SS(35) Zakah
Question-4:
A. Every types of wealth is zakatable
B. Income generating fixed assets are zakatable
C. Agricultural produce are not zakatable

SS(35) Zakah
Question-5:
Which of the following are zakatable?
A. Gold, silver and currencies
B. Trade articles
C. Agricultural produce
D. All of the above

SS(35) Zakah
Question-6:
Which of the following assets is zakatable?
A. Intangible assets for operational use
B. Spare parts used for operation but kept in warehouse
C. Trademarks

SS(35) Zakah
Question-7:
The zakatable assets of institution includes a real estate property that it leased out to Party A.
• The purchase price of the property: CU 500,000
• The market price of the property as at the Zakah due date: CU 750,000
• The rental income from the property during the year: CU 30,000, out of which CU 10,000 was
spent by the institution for different purposes
Based on the above information, which of the following will be zakatable?

A. CU 750,000
B. CU 500,000
C. CU 30,000
D. CU 20,000

SS(35) Zakah
Question-8:
An Institution based in Malaysia holds cash of MYR 800,000 and USD 500,000. The MYR/USD
exchange rate at different dates are as follows:
• On the day of acquiring the USD: 1 USD = 4 MYR
• On the year beginning day: 1 USD = 4.05 MYR
• On the day when Zakah become due: 1 USD = 4.10 MYR
Based on the above information, how much the institution will pay as Zakah for its cash assets if
Zakah rate of a leap year applies?
A. MYR 71,250
B. MYR 73,444.50
C. MYR 73,458.75
D. MYR 33,507.50

SS(35) Zakah
Question-8:

SS(35) Zakah
Question-9:
Islamic Bank A deposited CU 500,000 in an investment account at Islamic Bank B based on a
Mudarabah contract. Islamic Bank B invested the money in a venture where 30% of the assets are
zakatable (e.g., cash and trading goods) and 70% of the assets are not zakatable (e.g., fixed assets
and operational assets).
In the above scenario, what will be the zakatable asset for Islamic Bank A?
A. CU 500,000
B. CU 350,000
C. CU 150,000

SS(35) Zakah
Question-10:
The 2.50% Zakah rate applies for:
A. Solar year
B. Lunar year
C. Leap year
D. Agricultural produce

SS(36) Impact of Contingent Incidents on
Commitments
Question-1:
If the object of commitment is damaged before being delivered to the committing party, the loss
should be borne by the committed party.
A. True
B. False

Commitments
Question-2:
If the object of commitment turned out to be owned by someone else other the committed party,
the committing party becomes entitled to compensation.
A. True
B. False

Commitments
Question-1:
If the object of commitment is damaged before being delivered to the committing party, the loss
should be borne by the committed party.
A. True
B. False

Commitments
Question-2:
If the object of commitment turned out to be owned by someone else other the committed party,
the committing party becomes entitled to compensation.
A. True
B. False

SS(37) Credit Agreement
Question-1:
i. The institution is permitted to take commission for the credit study it prepares internally or
through an external party, so as to know the credit worthiness of the client and his ability to
honor his commitments within the period agreed upon.
ii. It is impermissible for the Institution to obtain commission for offering credit facilities.
iii. It is impermissible for the Institution to obtain commission for renewal or extension of credit
facilities.
Which of the above statements is incorrect?
A. (i) and (ii)

B. (i) and (iii)
C. (ii and iii)

SS(37) Credit Agreement
Question-1:
i. The institution is permitted to take commission for the credit study it prepares internally or
through an external party, so as to know the credit worthiness of the client and his ability to
honor his commitments within the period agreed upon.
ii. It is impermissible for the Institution to obtain commission for offering credit facilities.
iii. It is impermissible for the Institution to obtain commission for renewal or extension of credit
facilities.
Which of the above statements is incorrect?
A. (i) and (ii)

B. (i) and (iii)
C. (ii and iii)

SS(38) Online Financial Dealings
Question-1:
When the contract is concluded through audio or audiovisual communication between the two
parties, it should become subject to the same Shari’ah rulings on contracts signed in the presence of
the two parties. In this context, the contract signing session is considered to have stopped when:
A. The conversation between the two parties is over

B. The conversation between the two parties is disconnected
C. The conversation between the two parties is shifted to another subject
D. All of the above

SS(38) Online Financial Dealings
Question-1:
When the contract is concluded through audio or audiovisual communication between the two
parties, it should become subject to the same Shari’ah rulings on contracts signed in the presence of
the two parties. In this context, the contract signing session is considered to have stopped when:
A. The conversation between the two parties is over

B. The conversation between the two parties is disconnected
C. The conversation between the two parties is shifted to another subject
D. All of the above

SS(39) Mortgage and its Contemporary
Applications
Question-1:
The rulings relating to the mortgaged asset include:
A. It should be a Shari'ah-permissible property

B. It should also be well specified (through pointing, naming or description)

SS(39) Mortgage and its Contemporary
Applications
Question-1:
The rulings relating to the mortgaged asset include:
A. It should be a Shari'ah-permissible property

B. It should also be well specified (through pointing, naming or description)

SS(40) Distribution of Profit in Mudarabah-Based
Investment Accounts
MCQs for this standard are provided together with the standard on Mudarabah.

SS(41) Islamic Reinsurance
Question-1:
It is not permissible for Islamic insurance companies to receive the amounts of the insurance
coverage from traditional reinsurance companies.

A. True
B. False

SS(41) Islamic Reinsurance
Question-1:
It is not permissible for Islamic insurance companies to receive the amounts of the insurance
coverage from traditional reinsurance companies.

A. True
B. False

SS(42) Financial Rights and How They Are
Exercised and Transferred
Question-1:
It is permissible to take consideration for transfer of put or call option rights, whether by means of
sale or otherwise.

A. True
B. False

SS(42) Financial Rights and How They Are
Exercised and Transferred
Question-1:
It is permissible to take consideration for transfer of put or call option rights, whether by means of
sale or otherwise.

A. True
B. False

SS(43) Insolvency
Question-1:
If the lessee becomes insolvent during the Ijarah term, the lessor shall be entitled, on a pro-rata
basis along with other creditors, to the amount of rent corresponding to the period during which
the usufruct was enjoyed. For the remaining period, the lessor shall have the option either to
terminate the Ijarah contract or to carry on with it so that he has claims on the insolvency assets for
the rent of the remaining period, while enabling the lessee to enjoy the usufruct.

A. True
B. False
SS(43) Insolvency
Question-1:
If the lessee becomes insolvent during the Ijarah term, the lessor shall be entitled, on a pro-rata
basis along with other creditors, to the amount of rent corresponding to the period during which
the usufruct was enjoyed. For the remaining period, the lessor shall have the option either to
terminate the Ijarah contract or to carry on with it so that he has claims on the insolvency assets for
the rent of the remaining period, while enabling the lessee to enjoy the usufruct.

A. True
B. False
SS(44) Obtaining and deploying liquidity
Question-1:
A. Islamic banks are not concerned about liquidity management as a large portion of their assets
are in the form cash and receivables
B. An IFI may obtain interest-based liquidity facility from the Central Bank
C. Liquidity management is all about liquidating Mudarabah and Musharakah ventures
D. Liquidity management is about balancing between obtaining and deploying liquidity

SS(44) Obtaining and deploying liquidity
Question-1:
A. Islamic banks are not concerned about liquidity management as a large portion of their assets
are in the form cash and receivables
B. An IFI may obtain interest-based liquidity facility from the Central Bank
C. Liquidity management is all about liquidating Mudarabah and Musharakah ventures
D. Liquidity management is about balancing between obtaining and deploying liquidity

SS(45) Protection of Capital and Investments
Question-1:
i. Obtaining Takaful cover for the leased assets underlying the Sukuk or other instruments
ii. Creating reserves to protect the capital through deductions from the investors’ share of profits
but not from the investment manager’s share of profits
iii. Diversifying the investment assets to achieve an appropriate return and minimize risks
iv. Taking security and guarantees in Murabahah, Salam or Istisna’a contracts to pay debts.
Which of the above is among the permissible methods of protecting capital?

A. (i), (ii) and (iv)
B. (ii), (iii) and (iv)
C. None of the above
D. All of the above

SS(45) Protection of Capital and Investments
Question-1:
i. Obtaining Takaful cover for the leased assets underlying the Sukuk or other instruments
ii. Creating reserves to protect the capital through deductions from the investors’ share of profits
but not from the investment manager’s share of profits
iii. Diversifying the investment assets to achieve an appropriate return and minimize risks
iv. Taking security and guarantees in Murabahah, Salam or Istisna’a contracts to pay debts.
Which of the above is among the permissible methods of protecting capital?

A. (i), (ii) and (iv)
B. (ii), (iii) and (iv)
C. None of the above
D. All of the above

SS(46) Al-Wakalah Bi Al-Istithmar (Investment
Agency)
Question-1:
It is permissible to make the appointment of an agent contingent agency upon the fulfillment of
certain conditions or to cause to take effect on a specified future date.

A. True
B. False

SS(46) Al-Wakalah Bi Al-Istithmar (Investment
Agency)
Question-1:
It is permissible to make the appointment of an agent contingent agency upon the fulfillment of
certain conditions or to cause to take effect on a specified future date.

A. True
B. False

SS(47) Rules for Calculating Profit in Financial
Transactions
Question-1:
The Financial Accounting Standards of AAOIFI must be applied for calculating and distributing profit
in deferred transactions across several financial periods.

A. True
B. False

Transactions
Question-2:
A. It is permissible to increase the profit in credit sales as compared to cash sales

B. It is permissible to determine profit in a Murabahah based on a conventional index/benchmark

Transactions
Question-1:
The Financial Accounting Standards of AAOIFI must be applied for calculating and distributing profit
in deferred transactions across several financial periods.

A. True
B. False

Transactions
Question-2:
A. It is permissible to increase the profit in credit sales as compared to cash sales

B. It is permissible to determine profit in a Murabahah based on a conventional index/benchmark

SS(48) Options to Terminate Due to Breach of
Trust (Trust-Based) Options
Question-1:
Cases of Tadlis (deceptive conduct) include:
A. Adding lubricants or other substances so that the product appears in a better condition.
B. Painting an old car to hide its age and give the impression that it is new.
C. Inaccurate statements to mislead the buyer into thinking that the sale item meets his
requirements, or falsely claiming that it is no longer available elsewhere in the market.
D. A + B.

SS(48) Options to Terminate Due to Breach of
Trust (Trust-Based) Options
Question-1:
Cases of Tadlis (deceptive conduct) include:
A. Adding lubricants or other substances so that the product appears in a better condition.
B. Painting an old car to hide its age and give the impression that it is new.
C. Inaccurate statements to mislead the buyer into thinking that the sale item meets his
requirements, or falsely claiming that it is no longer available elsewhere in the market.
D. A + B.

GS(1) Shari’a Supervisory Board - Appointment,
Composition and Report
Question-1:
The Shari’a supervisory board may include a member other than those specialized in Fiqh Al-Mua’malat.
Such a person –
A. Must be an expert in the field of Islamic financial institutions and have knowledge of Fiqh Al-
Mua’malat
B. Must be an expert in the field of Islamic financial institutions, have knowledge of Fiqh Al-Mua’malat,
and a director of the IFI
C. Must be an expert in the field of Islamic financial institutions, have knowledge of Fiqh Al-Mua’malat,
and a significant shareholder of the IFI

Question-2:
In appointment of a member of the Shariah supervisory board, which of the following process
should be followed?
A. Recommended by the CEO and appointed by the board of directors
B. Recommended by the board of directors and appointed by the shareholders
C. Recommended by the shareholders and appointed by the board of directors
D. Recommended by the nomination committee and appointed by the board of directors

Question-3:
What is the minimum number for composition of a Shariah supervisory board?
A. One
B. Three
C. Five
D. Seven

Question-4:
What is the dismissal procedure for a member of the Shariah supervisory board?
A. Recommended by the CEO and approved by the board of directors
B. Recommended by board of directors and approved by shareholders
C. Recommended by the shareholders and approved by the board of directors
D. Recommended by the nomination committee and approved by the board of directors

Question-5:
According to the Governance Standard for IFI’s, issued by AAOIFI, the SSB is entrusted with:
A. the task of issuing fatwa (determining the Shari’a ruling) and its fatwas are not binding upon the
IFI
B. the task of issuing fatwa (determining the Shari’a ruling) and its fatwas are binding upon the IFI
C. internal Shari’a audit
D. A and C

Question-1:
The Shari’a supervisory board may include a member other than those specialized in Fiqh Al-Mua’malat.
Such a person –
A. Must be an expert in the field of Islamic financial institutions and have knowledge of Fiqh Al-
Mua’malat
B. Must be an expert in the field of Islamic financial institutions, have knowledge of Fiqh Al-Mua’malat,
and a director of the IFI
C. Must be an expert in the field of Islamic financial institutions, have knowledge of Fiqh Al-Mua’malat,
and a significant shareholder of the IFI

Question-2:
In appointment of a member of the Shariah supervisory board, which of the following process
should be followed?
A. Recommended by the CEO and appointed by the board of directors
B. Recommended by the board of directors and appointed by the shareholders
C. Recommended by the shareholders and appointed by the board of directors
D. Recommended by the nomination committee and appointed by the board of directors

Question-3:
What is the minimum number for composition of a Shariah supervisory board?
A. One
B. Three
C. Five
D. Seven

Question-4:
What is the dismissal procedure for a member of the Shariah supervisory board?
A. Recommended by the CEO and approved by the board of directors
B. Recommended by board of directors and approved by shareholders
C. Recommended by the shareholders and approved by the board of directors
D. Recommended by the nomination committee and approved by the board of directors

Question-5:
According to the Governance Standard for IFI’s, issued by AAOIFI, the SSB is entrusted with:
A. the task of issuing fatwa (determining the Shari’a ruling) and its fatwas are not binding upon the
IFI
B. the task of issuing fatwa (determining the Shari’a ruling) and its fatwas are binding upon the IFI
C. internal Shari’a audit
D. A and C

GS(2) Shari’a Review
Question-1:
The SSB’s report should be read out during the institution’s Annual General Meeting.
A. True
B. False

Question-2:
One of the most important functions of the SSB Secretariat is to:
A. examine the IFI’s transactions and activities, in a thorough way, and preparing them for
submission to the SSB
B. formulating all resolutions issued by the SSB
C. following up the communication of the SSB’s resolutions to the IFI
D. All the above is correct

Question-1:
The SSB’s report should be read out during the institution’s Annual General Meeting.
A. True
B. False

Question-2:
One of the most important functions of the SSB Secretariat is to:
A. examine the IFI’s transactions and activities, in a thorough way, and preparing them for
submission to the SSB
B. formulating all resolutions issued by the SSB
C. following up the communication of the SSB’s resolutions to the IFI
D. All the above is correct

GS(3) Internal Shari’a Review
Question-1:
What is meant by Internal Shari’a Review Department, according to AAOIFI’s Governance standards,
is:
A. The SSB when it is part of the IFI’s organizational structure.
B. The internal Shari’a auditor who is reporting to the IFI’s management and has the highest degree
of independence within the IFI’s organizational structure and his reference is the SSB.
C. The Shari’a requirements issued by the SSB or any Shari’a body within the IFI’s organizational
structure and has mandatory and statutory powers.
D. Internal audit department.

Question-2:
The Governance Standards issued by the Accounting and Auditing Organization for Islamic Financial
Institutions (AAOIFI) include two Shari’a review parties supervising the institution’s activities, the
first affiliated to the institution’s SSB, and it is conducted by one or more than one SSB member, or
another person affiliated to the SSB, while the other party is affiliated to the institution’s
management for the sake of assisting it to execute transactions in accordance with the SSB’s rulings
and pronouncements.
A. True
B. False

Question-3:
The charter of the internal Shariah review shall be approved by the:
A. Board of directors
B. Shariah Supervisory Board
C. Management
D. Audit and Governance Committee

Question-4:
The internal Shari’a review shall be carried out by –
A. Internal audit department

B. An independent division/department
C. An independent audit firm
D. A department as appointed by the central bank

Question-5:
Planning and designing Shari’a review procedures involve –
A. Understanding the management’s awareness towards compliance with the Shari’a

B. Understanding the management’s attitude towards compliance with the Shari’a
C. Understanding about the IFI’s operations
D. All of the above

Question-6:
What is the primary objective of internal Shariah review?
A. To ensure that the management of an IFI discharge their responsibilities in relation to the
implementation of the Shari’a rules and principles
B. To ensure that the SSB of an IFI discharge their responsibilities in relation to formulating the
Shari’a rules and principles
C. To ensure that the board of directors of an IFI discharge their responsibilities in relation to the
D. All of the above

Question-1:
What is meant by Internal Shari’a Review Department, according to AAOIFI’s Governance standards,
is:
A. The SSB when it is part of the IFI’s organizational structure.
B. The internal Shari’a auditor who is reporting to the IFI’s management and has the highest degree
of independence within the IFI’s organizational structure and his reference is the SSB.
C. The Shari’a requirements issued by the SSB or any Shari’a body within the IFI’s organizational
structure and has mandatory and statutory powers.
D. Internal audit department.

Question-2:
The Governance Standards issued by the Accounting and Auditing Organization for Islamic Financial
Institutions (AAOIFI) include two Shari’a review parties supervising the institution’s activities, the
first affiliated to the institution’s SSB, and it is conducted by one or more than one SSB member, or
another person affiliated to the SSB, while the other party is affiliated to the institution’s
management for the sake of assisting it to execute transactions in accordance with the SSB’s rulings
and pronouncements.
A. True
B. False

Question-3:
The charter of the internal Shariah review shall be approved by the:
A. Board of directors
B. Shariah Supervisory Board
C. Management
D. Audit and Governance Committee

Question-4:
The internal Shari’a review shall be carried out by –
A. Internal audit department

B. An independent division/department
C. An independent audit firm
D. A department as appointed by the central bank

Question-5:
Planning and designing Shari’a review procedures involve –
A. Understanding the management’s awareness towards compliance with the Shari’a

B. Understanding the management’s attitude towards compliance with the Shari’a
C. Understanding about the IFI’s operations
D. All of the above

Question-6:
What is the primary objective of internal Shariah review?
A. To ensure that the management of an IFI discharge their responsibilities in relation to the
B. To ensure that the SSB of an IFI discharge their responsibilities in relation to formulating the
Shari’a rules and principles
C. To ensure that the board of directors of an IFI discharge their responsibilities in relation to the
D. All of the above

GS(4) Audit and Governance Committee for
Islamic Financial Institutions
Question-1:
The reports of the Audit and Governance Committee shall be submitted to the –
A. Chief Executive Officer

B. Board of directors
C. Shareholders

Question-2:
The term of office of an Audit and Governance Committee member shall –
A. be minimum three years
B. match the term of the Chairman of the board of director
C. match the term at the board of directors
D. All of the above

Question-3:
The Audit and Governance Committee shall be established by the –
A. Shareholders
C. Management
D. Regulator

Question-1:
The reports of the Audit and Governance Committee shall be submitted to the –
A. Chief Executive Officer

C. Shareholders

Question-2:
The term of office of an Audit and Governance Committee member shall –
A. be minimum three years
B. match the term of the Chairman of the board of director
C. match the term at the board of directors
D. All of the above

Question-3:
The Audit and Governance Committee shall be established by the –
A. Shareholders
C. Management
D. Regulator

2022-03-12 MCQs For CSAA Exam Preparation

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2022-03-12 MCQs For CSAA Exam Preparation

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MCQs for CSAA Exam

* Few of the questions are taken from AAOIFI’s Mock Questions

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

The above statement is:

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

The above statement is:

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

The above statement is:

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

The above statement is:

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

A. It is not permissible to withdraw more than the available funds

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

A. It is permissible to issue a credit card if there is no Shari’ah impermissible element

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

A. Conventional life insurance

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

The above statement is:

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

A. It is not permissible to withdraw more than the available funds

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

A. It is permissible to issue a credit card if there is no Shari’ah impermissible element

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

A. Conventional life insurance

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

The above statement is:

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

A. To investigate a defaulting debtor

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

A. Compensation for opportunity loss

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

A.A penalty clause is permissible in an Istisna’a contract

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

Which of the following is permissible for an institution?

A. To investigate a defaulting debtor

C. To accept donation from a defaulting debtor to pay salaries of the staffs

D. None of the above

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

A. Compensation for opportunity loss

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

A.A penalty clause is permissible in an Istisna’a contract

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

A.Debt originating contract date

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed

MCQs for CSAA Exam Preparation Mezbah Uddin Ahmed