(i)

Multiple Choice Questions. 1 mark each.

1. The role of the intention can be observed as follows except: a) b) c) d) Differentiating between a custom or personal habit ( ibadah and adah). Differentiate between one kind of ibadah and another. A Shariah requirement to make the business transaction valid. A Shariah requirement for devotional activities (ibadat).

2. The liability of a person who finds somebody's goods lying in the way and picks it up will be contingent upon the intention with which he has picked it up. If he intends to hand it over to the owner and has made it known to' others he will be treated as a trustee and will not be required to indemnify the owner in case the property is destroyed while in his possession. But if he has kept it as owner he would be treated as a usurper, Ghasib, and will be required to indemnify the owner in case the property is destroyed. a) The above Shariah ruling in the case in true b) The above Shariah ruling in the case is false

3. If two persons concluded a contract apparently a specific rental is provided for, the contract would be regarded as a contract of hire as it real meaning indicates, and not a contract of loan as the wording of the contract would suggest. a) The above Shariah ruling in the case i n true b) The above Shariah ruling in the case is false

4. A person makes an earning for different purposes: 1. For the satisfaction of his selfish urges. 2. For personal consumption and demonstration effects. 3. For complying with the divine command to earn for the sake of survival and spending on noble causes. a) b) c) d) 1&2 1&3 2&3 1, 2, & 3

5. The person discloses his intention and no evidence against his intention: The rules goes according to his intention. a) The above Shariah ruling in the case in true b) The above Shariah ruling in the case is false

6. The person discloses his intention and the evidence is against his intention: The rules goes according to the evidence. a) The above Shariah ruling in the case in true b) The above Shariah ruling in the case is false

7. The circumstances and the environment of the transaction through the term and conditions stipulated show that the objectives of the parties is beyond the form of the contract agreed upon, and therefore it may invalidate the tansaction. a) The above Shariah ruling in the case in true b) The above Shariah ruling in the case is false

8. According to the objective theory, the law goes by the obvious meaning of the words used for offer an acceptance. It does not attempt to investigate the inner intention of the contracting parties. Whereas the subjective theory tries to investigate the inner intention of the parties as well. If it can be shown that the ultimate purpose is unlawful, the subjective theory will declare the contract unlawful. a) The above Shariah ru ling in the case in true b) The above Shariah ruling in the case is false

9. The Shariah standardisation in Islamic finance: a) Possible and relevant to Islamic finance b) Impossible and not relevant to Islamic finance c) Possible and relevant to Islamic finance with some conditions to be observed

10. In all mudarabah-based accounts, any stipulation of any fixed return will render the contract null and void. a) The above Shariah ruling in the case in true

b) The above Shariah ruling in the case is false

11. The IFIs may publish the historical rate of return or may publish an estimated rate of return for respective maturity period of mudarabah-based account. This quoted estimated profit is not a liability on the IFIs. a) The above Shariah ruling in the case in true b) The above Shariah ruling in the case is false

12. Any promotional gift can be advertised to the public for them to open a mudarabah account as this is not deemed as interest because the bank is not a borrower under mudarabah contract. a) The above Shariah ruling in the case in true b) The above Shariah ruling in the case is false

13. This profit is paid from PER to smoothen the payment of profit at the rate which is competitive to the rate in the market particularly the r ate of interest paid for conventional accounts. This cannot be deemed as interest as the extra profit is taken from the reserve account and not paid by the bank. a) The above Shariah ruling in the case in true b) The above Shariah ruling in the case is false

14. Tthe application of indicative profit in Islamic banking mudharabah contract is permissible based on the following conditions: (i) The Islamic banking indicative profit rate is only regarded as an reference of the expected return that will be received; and (ii) If the actual profit rate received by Islamic banking at the time the contract a) The above Shariah ruling in the case in true b) The above Shariah ruling in the case is false

15. The bank cannot impose administrative cost on depositors (sahibul mal) in mudharabah deposit account. If the bank requires additional amount to cover the administrative cost, it should be taken into account when deciding on the profit sharing ratio as agreed by both parties.

a) The above Shariah ruling in the case in true b) The above Shariah ruling in the case is false

16. The right to sale the receivables to a third party. a) Permissible b) Not permissible c) Disputable and allowed in Malaysia

17. The relationship between Inah and Tawarruq a) b) c) d) Inah is similar to Tawarruq and both are no ne permissible Inah is different than Tawarruq and both are none permissible Inah is different than Tawarruq and both are permissible Inah is different than Tawarruq and both are disputable

18. Purchase of an object that does not exist when the contr act is being made is considered bai` ma`dum. a) The above concept true b) The above concept false

19. The relationship between Salam and Istisna a) b) c) d) Both are same and govern by the same Shariah ruling Both are different but govern by the same Shariah ruling Both are same and govern by different Shariah ruling Both are different and govern by different Shariah ruling

20. In Istisna the raw material of the subject matter to be manufactured could not be supplied by the buyer, otherwise, the contract becom es an ijara. a) The above Shariah ruling in the case in true b) The above Shariah ruling in the case is false