Quiz on Islamic Finance

What is the primary focus of Islamic finance?

• Promoting individualism

• Investing in non-compliant activities

• Resource allocation and management

• Maximizing profit at any cost

Which of the following is a fundamental principle of Islamic finance?

• Interest-based transactions

• Unlimited consumption

• Shari’ah compliance

• Speculative investments

What does the concept of Istikhlaf imply?

• Absolute ownership of resources

• Trust and responsibility

• Complete freedom in financial dealings

• Disregard for ethical considerations

What is the relationship between Islamic finance and Shari’ah?

• Shari’ah is irrelevant to finance

• All transactions must be Shari’ah compliant

• Shari’ah only applies to personal matters

• Finance is separate from religious principles

Which of the following is NOT a characteristic of Islamic finance?

• Risk transformation

• Interest-based lending

• Investment in ethical projects

• Resource management

What does Maqasid al-Shari’ah refer to?

• The goals of Shari’ah

• The history of Islamic finance

• The legal framework of finance

• The principles of conventional finance

Which principle emphasizes justice in Islamic finance?

• ‘Adalah

• Kafalah

• Risalah

• Tawhid

What is the role of human beings according to Islamic economics?

• To prioritize material wealth

• To disregard communal well-being

• To act as vicegerents of God

• To exploit resources for personal gain

Which of the following is a prohibited element in Islamic finance?

• Asset-backed financing

• Profit-sharing

• Interest (Riba)

• Risk-sharing

What does the term 'Falah' signify in Islamic finance?

• Material possessions

• Success and well-being

• Wealth accumulation

• Social status