ICEBREAKER FIN546

Which principle distinguishes Islamic finance from conventional finance?

• Profit sharing
• Interest-based lending
• Risk sharing
• Fixed returns
• Pluto

Answer explanation

Islamic finance emphasizes risk sharing over interest-based lending.

What does the term 'Shariah' refer to?

• Islamic law
• Financial investment
• Profit distribution
• Risk management

Answer explanation

Shariah is the moral and legal framework guiding Islamic life, including finance.

Which of these is prohibited in Islamic finance?

• Interest (Riba)
• Equity investment
• Profit sharing
• Risk management

Answer explanation

Riba (interest) is not allowed in Islamic finance as it leads to unjust enrichment.

What motivates you most to study Islamic Finance?

• Career opportunities
• Interest in ethics
• Social impact
• Cultural/religious interest

In one word, describe what Islamic Finance means to you.

Islamic finance promotes risk _____ between parties.

Answer explanation

The key idea is that risks should be shared among all parties involved.

What does "Halal" mean in Islamic finance?

• Permissible
• Forbidden
• Uncertain
• Unimportant

Answer explanation

Halal refers to what is permissible under Islamic law.

Which Islamic financial instrument is similar to a conventional bond?

• Sukuk
• Murabaha
• Ijarah
• Mudarabah

Answer explanation

Sukuk are Islamic bonds structured to comply with Shariah law.

Which profit-sharing mode in Islamic finance involves a partnership where one party provides capital and the other provides expertise?

• Mudarabah
• Murabaha
• Ijarah
• Salam

Answer explanation

Mudarabah is a profit-sharing arrangement where one party invests and the other manages the business.

Which Islamic festival marks the end of Ramadan?

• Eid al-Fitr
• Eid al-Adha
• Ramadan
• Laylat al-Qadr

Answer explanation

Eid al-Fitr is celebrated at the end of Ramadan, marking the conclusion of fasting.