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Final Exam Islamic Economics
Final Exam Islamic Economics
No. of Pages: 4
Instructor: Dr.Marwa Nassar
No. of Questions: 20
1. In Islam, “the notion of a sole loser or a sole winner doesn’t exist”, this underlies
A. Risk sharing.
B. Risk transfer.
C. Risk-free transaction.
D. Risk assessment procedure.
2. A Commercial property owner leases a store to a tenant, with a clause included in the
contract states that “the store tenant should keep the storefront and the sidewalk
immediately outside the shop clean and free of snow or ice in the winter months”. This
makes the store tenant legally responsible if a customer of the store slips and falls
outside on ice. Such an action is a good example of :
A. Risk management.
B. Risk transfer.
C. Risk trading.
D. Risk sharing.
3. A less known model for an Islamic bank is:
A. Wikala model.
B. Two-windows model.
C. Demand and investment account model.
D. Two-tier Mudarabah.
4. Borrowing money from a broker to purchase stock is called :
A. Short selling.
B. Buying on margin.
C. Put option.
D. Investment fund.
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5. The notion of “ too big to fail”, implies:
A. Hedging using financial derivatives technique.
B. Speculation in stock market to benefit from price fluctuation.
C. Government subsidies to financial institutions in times of crisis.
D. Using Islamic banks to finance big projects.
6. In Mudarabah contract, losses have been incurred despite the mudarib efficient work.
This makes:
A. Both parties share profit and losses equally.
B. The investor bears all the financial losses.
C. The investor bears a percentage of the losses while the mudarib bears the rest.
D. The mudarib bears all the losses and the investor should be paid back.
13. ABC stock company currently sells its stocks for 100$ per stock. And you expect it will
go up to 120$ within the next 3 months. So you go for a call option to purchase 100
shares at a strike price 100$ per share and paying a premium of 1$ per share. After 3
months, the stock goes up to 130$. At this point you exercise your call option and buy
100 shares, making you:
A. Loser by 1900.
B. Losers by 900.
C. Gainer by 2900.
D. Gainer by 1900.
14.The main difference between the wikala model and mudarabah model is:
A. The way of sharing profit and losses.
B. The scope of the task, degree of responsibility.
C. One is permissible and the other isn’t.
D. One is backed with assets while the other isn’t.
15.Current account in conventional bank resembles:
A. Musharakah contract.
B. Amanah contract.
C. Kifala.
D. Jo’ala.
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16.A two- tier model is based on:
A. Mudarabah between the investor and the bank, and between the bank and the
entrepreneur.
B. A demand and investment account model.
C. A wikala model.
D. An Amanah model.
17.When a third party becomes a surety for the payment of the debt if it is not fulfilled by
the person originally liable, this is called:
A. Amanah.
B. Wadia.
C. Kifala.
D. Jo’ala.
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21.In Islam, “the notion of a sole loser or a sole winner doesn’t exist”, this underlies
E. Risk sharing.
F. Risk transfer.
G. Risk-free transaction.
H. Risk assessment procedure.
22.A Commercial property owner leases a store to a tenant, with a clause included in the
contract states that “the store tenant should keep the storefront and the sidewalk
immediately outside the shop clean and free of snow or ice in the winter months”. This
makes the store tenant legally responsible if a customer of the store slips and falls
outside on ice. Such an action is a good example of :
E. Risk management.
F. Risk transfer.
G. Risk trading.
H. Risk sharing.
23.A less known model for an Islamic bank is:
E. Wikala model.
F. Two-windows model.
G. Demand and investment account model.
H. Two-tier Mudarabah.
24.Borrowing money from a broker to purchase stock is called :
E. Short selling.
F. Buying on margin.
G. Put option.
H. Investment fund.
26.In Mudarabah contract, losses have been incurred despite the mudarib efficient work.
This makes:
E. Both parties share profit and losses equally.
F. The investor bears all the financial losses.
G. The investor bears a percentage of the losses while the mudarib bears the rest.
H. The mudarib bears all the losses and the investor should be paid back.
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27.An example of Amanah contract in an Islamic Bank:
E. Demand deposit.
F. Wadia contract.
G. Wikala contract.
H. Investment fund.
31. “ The government declares that whoever could supply a specific type of steel needed
in the construction of a cancer hospital with a price of 800$ per ton, then he will be
rewarded by 500,00 Egyptian pounds”, this is a type of:
E. Kifala contract.
F. Wikala contract.
G. Mudarabah contract.
H. Jo’ala contract.
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32.The type of investment that is most probably permissible in Islam is:
E. Investment fund.
F. Preferred stock.
G. Bearer stock.
H. Government securities.
33. ABC stock company currently sells its stocks for 100$ per stock. And you expect it will
go up to 120$ within the next 3 months. So you go for a call option to purchase 100
shares at a strike price 100$ per share and paying a premium of 1$ per share. After 3
months, the stock goes up to 130$. At this point you exercise your call option and buy
100 shares, making you:
E. Loser by 1900.
F. Losers by 900.
G. Gainer by 2900.
H. Gainer by 1900.
34.The main difference between the wikala model and mudarabah model is:
E. The way of sharing profit and losses.
F. The scope of the task, degree of responsibility.
G. One is permissible and the other isn’t.
H. One is backed with assets while the other isn’t.
35.Current account in conventional bank resembles:
E. Musharakah contract.
F. Amanah contract.
G. Kifala.
H. Jo’ala.
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37.When a third party becomes a surety for the payment of the debt if it is not fulfilled by
the person originally liable, this is called:
E. Amanah.
F. Wadia.
G. Kifala.
H. Jo’ala.
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