Q1. MULTIPLE CHOICE QUESTIONS:

1. Leased asset status is Amana(Trust) in the hand of the lessee. Any damage to leased asset caused by lessee's negligence or mistake he will be responsible for this damage

a. True

b. False

2. Which of the following statements about diminishing Musharakah is correct?

a.	Rental payments remain constant while Unit sale price decreases
b.	Rental payments decrease while Unit Sale Price remains constant
c.	Both rental payments and Unit sale price decrease

d. Rental payment decrease while unit sale price increase.

3. If A and B enter into a Musharakah contract and it is agreed between them that A will get 15% of his investment, this contract is valid.

a. True

b. False

4. Mr. Saeed sold his car for PKR 1.5 million which he had purchased for PKR 1.6 million. He mentioned the details about it to the counterparty including total costs (PKR 1.6 mn). This type of sale is known as Murabaha.

a. True

b. False

5. Which of the following will make Murabaha invalid?

	a.	If payment is made in installments
	b.	if the supplier is not paid directly by the bank.
	c.	Price not agreed.
	d.	Price not fully paid.

6. Murabaha is a ___________ based contract.

	a.	Agency
	b.	Partnership
	c.	Rental

d. Sale

7. Which of the following is not a correct statement about the lease rentals?

	a.	It should be fixed for the entire lease period
	b.	Fixing is not allowed in any case ()
	c.	It can be tied up to a known benchmark acceptable to both the parties
	d.	It can be fixed on periodic basis but periodic increment should be agreed upon

8.

Two or more persons are the joint owners of an asset and they have no intention of the business based on this partnership. This type of shirkat is called

	a.	Shirkat-ul-Mufawada
	b.	Shirkat-ul-Amwal
	c.	Shirkat-ul-Aamal
	d.	Shirkat-ul-Inan
	e.	Shirkat-ul-Wujooh
	f.	Shirkat-ul-Milk

g. Shirkat-ul-aqd

9.

When is the title of the asset transferred in Ijarah (Al-Muntahiyah Bit Tamleek) to the client?

	a.	At the end of lease if client purchases and bank sells the asset to client
	b.	At the end of the lease automatically ()
	c.	At the start of lease

d. Does not transfer

10. In participation/partnership based contracts, ______ is always subject to the ratio of investment while _________ distribution is based on pre-agreed ratio.

	a.	Profit, Profit
	b.	Loss, Profit
	c.	Profit, Loss
	d.	Loss, Loss