Multiple Ch Questions Circle the letter next to the most accurate answer. 1. A key principle related to Islamic finance is: a. Encouragement to use Riba and loss b. Earning money from money c. Avoid hoarding d. Hoarding 2. Which one below is not forbidden in Islamic finance and banking a. All kinds of risk b. Hoarding of goods c. Speculative behaviour d. Making money out of money 3. Which of the following statement(s) is/are correct about the early evolution of Islamic finance? a. Islamic finance was born in the early yth century and continued to develop up to the with century b. Islamic finance contracts like Mudaraba and Musharaka were in use for trade and business c. Islamic traders and ships faced frequent events of mutiny while at sea d. Only a and b 4. Western conventional banking was established by three groups of people. Which group below is not one of them? a. Rich merchants b. Goldsmiths c. Money lenders d. Land owners 5. Islamie economics ensures: a. Socio-economic justice b. Harmony between the moral and material needs of society c. Shariah compliance in economic activities d. All of the above 6. Zakat is an important financial tool in Islam. Zakat application differs for money used in a productive manner or kept idle as cash. Which statement below best describes this goal of Zakut? a. To finance government expenses only b. To encourage holding cash c. To encourage productive activities d. To discourage acquisition of material goods 7. Islamic economics differs from conventional economics as it requires the benefit of society and the environment in addition to individual gain and business profit. Which statement below best describes this? a. To create public good b. To encourage profitable ventures e. To moderate profit through application of Zakat d. To control acquisition of material goods 8. The world's first Islamic banking experiment happened in: UK b. Malaysia Egypt d. Bahrain 9. The first commercial Islamic bank of the world was set up in: a. Feypt in 1963 b. Dubai in 1975 c. Saudi Arabia in 1960 d. Malaysia in 1970 10. The world's first commercial Islamic bank was a Qatar Islamic Bank b. Dubai Islamic Bank c. May Bank Islamic d. Commercial Bank of Dubai