1. Islamic banks:
   1. Pay interest to their depositors
   2. Charge interest to their lenders
   3. Do not provide financing without collateral
   4. Base their investing criteria on the investment potential of the project and not just on collateral

2. Islamic banks:
   1. Base their investment decisions entirely on the collateral submitted by the client
   2. Base their investment decisions on the investment potential of the project and not just on collateral
   3. May accept interest on their liabilities but donate it to charity
   4. Both a and c

3. Abdulla agrees to sell his house to Ahmed at the market price. Is the sale valid under Islamic finance?
   1. Yes, the sale is valid because it is not fair that Abdulla loses money should the market price go up. At the same time, it is not fair that Ahmed pays too much for the house should the market price go down
   2. No, the sale is not valid because Abdulla and Ahmed did not sign a written bilateral contract agreement specifying this condition
   3. Yes, the sale is valid because both Abdulla and Ahmed agree to this condition and therefore they enter into a bilateral contract agreement
   4. No, the sale is not valid because the specific price has to be stated under the Islamic finance contract requirements
4. The AAOIFI has determined the way to make up the Takaful deficit. Which of the following is not one of them?
   1. From the reserve fund created by policyholders
   2. By borrowing from the shareholders fund to be paid back from future surpluses
   3. By issuing new shares to raise funds
   4. By increasing future premium contributions of policyholders on a pro-rata basis