Subject: ISLAMIC BANKING AND FINANCE Note: Please write from a computer or laptop (

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Q1:Salam and Istisnaa a- In what sense is Istisna'a and Salam an asset-based or equity-based source of finance? b- What is the risk for the Rab ul Mall providing the finance? Q2: Musharaka and Mudaraba A. A and B established a Mudaraba company where B is the Mudarib, find a) if profit after first year was USD 900,000:, How much A and B will get if profit sharing ratio between them is 75:25? (3 MARKS) b) if losses after first year was USD 10,000 How much share on this losses? B. An (IFI) Islamic Financial Institution (IFI) invested in a two-year project valued at USD. 700,000 by providing 70% of the capital based on the Musharakah contract. At the end of the first year, the project value declined by 40%. (7Marks) Q1:Salam and Istisnaa a- In what sense is Istisna'a and Salam an asset-based or equity-based source of finance? b- What is the risk for the Rab ul Mall providing the finance? Q2: Musharaka and Mudaraba A. A and B established a Mudaraba company where B is the Mudarib, find a) if profit after first year was USD 900,000:, How much A and B will get if profit sharing ratio between them is 75:25? (3 MARKS) b) if losses after first year was USD 10,000 How much share on this losses? B. An (IFI) Islamic Financial Institution (IFI) invested in a two-year project valued at USD. 700,000 by providing 70% of the capital based on the Musharakah contract. At the end of the first year, the project value declined by 40%. (7Marks)