FIN546 : Chapter 1

The following are secondary sources of Shari'ah, EXCEPT

• Istishab

• Ijma'

• Hadith

• 'Urf

Qiyas is defined as an extension of a Shari'ah value or original case to a new case because the latter has the same effective cause.

• True

• False

Maqasid al-Shari'ah is the objective of Shariah in promoting and preserving religion, life, wealth, progeny and ___________.

• intellect

• dignity

• country

• justice

Identify the type of riba when the ribawi materials exchanged are of different weights, measurements or numbers and are exchanged at the same time.

• Riba Qardh

• Riba Nasi'ah

• Riba Fadhl

• Riba Jahiliyyah

The amount of riba' can be only determined at the end of a business project.

• True

• False

Purchase of fruits without peeling or cutting off the skin to see the inside is an example of gharar fahish.

• True

• False

____________ refers to the easy acquisition of wealth by chance, whether or not it deprives the other’s right.

• Riba'

• Gharar

• Maisir

• Ihtikar

Exchange RM200 with USD50 on a deferred basis. Identify the type of riba.

• Riba Yad

• Riba Nasi'ah

• Riba Fadlh

• No riba occurs.

Islamic finance concentrates on profit-making objectives in terms of individual and organization.

• True

• False

There are 4 stages of prohibition of riba'.

• True

• False