1. Islamic banks receive the deposits from their account holders on the basis of profit and loss partnership and invest these deposits with various kinds of clients either through Partnership transaction, Rental transaction, Sale and purchase transaction.

True

False

Asad borrowed Rs 10,000/- from Saad with a credit period of three months. Saad demanded extra benefit in return (i-e) you have to repay me Rs 10,500/- after three months. Choose the correct statement of the followings about this transaction:

• This transaction cannot be classified under any category of Riba.
• This transaction can be classified as Riba-Al-Nasiyah
• This transaction can be classified as Riba-Al-Hadith
• This transaction can be classified as Riba-Al-Fadhl

Asad is in need but short of PKR 1,000. He borrows from Saad. Asad repays this borrowed amount after six months but with an extra amount of PKR 100 i-e 1100 although the extra amount was not demanded by Saad at the time of contract.

• This extra amount is Riba-Al-Nasiyah
• This extra amount is not Riba.
• This extra amount is Riba-Al-Qura'n.
• This is extra amount is Riba-Al-Fadhl