True or False Questions

Indicate T for True and F for False.

1. The bay' al amaanah contracts involve selling a product at cost price.

2. Example of maysir in the capital market is the short-selling of shares.

3. Riba al nasiah is related to the exchange of certain type of goods/commodities that involve different counter value and or deferred delivery.

4. The istisna contract in Islamic banking is related to the agricultural goods

5. In the mudaraba contract loss is to be borne by the capital provider in all cases, even if it is due to the negligence of the mudharib.

6. Giving share of investor to customer on lease is a basis of diminishing musharaka.

7. Wakalah is used by the Islamic institutions mostly for fund management.

8. The term hawalah refers to repayment of loan.

9. In the musharakah mutanaqisah house financing, the bank share in the asset would be passed on to the customers through the contract of ijarah.

10. Under the murabahah sales the goods are sold at cost only which have to be make known to the buyer.

11. All stock undergoing IPO process need to go for Shariah screening by the Shaarih Advisory Council before it is offered for sale.

12. There is direct justification for salam contract in the Quran.

13. In a musharakah agreement, the distribution of profit would be based on agreed amount agreed by all partners at the beginning of the contract.

14. The Islamic banks in Malaysia recognize the age where an individual has capacity to sign contract based on the Sharih where the person is sane, mature and has reached puberty.

15. In an ijtihad, the effort must be done by few jurists to derive a consensus.