Financial Instrument Quiz

What is a financial instrument?

• A document representing a legal agreement involving monetary value

• A type of musical instrument

• A cooking utensil

• A gardening tool

According to AAOIFI, what are investment funds?

• Tools used for painting

• Types of musical instruments

• Physical assets like buildings and machinery

• Financial vehicles independent of the institutions that establish them

What is the primary characteristic of Equity Market Instruments?

• Investing in the stock/share market

• Investing in real estate only

• Investing in precious metals

• Investing in cryptocurrencies

What is the main function of a Unit Trust/Mutual Fund?

• A type of government bond

• A legal document for property ownership

• A type of insurance policy

• Pooled investment plan managed by professional fund managers

What is the characteristic of Real Estate Investment Trusts (REITs)?

• Investing at least 50% of total assets in real estate

• Investing in agriculture

• Investing in the stock market

• Investing in technology companies

What is the definition of Islamic REITs (I-REITs)?

• A type of mutual fund

• A type of government bond

• A type of cryptocurrency

• A collective investment scheme in real estate with Shariah-compliant tenants

What is the main difference between Islamic ETFs and conventional ETFs?

• The benchmark index that the ETF tracks

• The number of employees in the ETF company

• The color of the ETF logo

• The size of the ETF office

What is the feature of an ETF?

• A type of art exhibition

• A type of cooking show

• A type of musical performance

• Listed index-tracking fund that can be bought and sold anytime during stock exchange trading hours

What is the role of the trustee in a Unit Trust?

• To provide medical services to the unit holders

• To handle the fund's legal matters

• To manage the fund's marketing activities

• To look after the interest of the unit holders and ensure compliance with Shariah

What does the Securities Commission do in relation to unit trusts?

• Safeguard the interests of investors and formulate regulations for unit trusts

• Provide loans to unit trusts

• Manage the day-to-day operations of unit trusts

• Sell unit trusts to investors