Test your knowledge

Mutiple Choice Questions


Here are fifteen Multiple Choice Questions (MCQs) that will test your knowledge about the basic Islamic economic principles and the rulings that apply to Islamic contracts, Islamic banking and finance, and takaful (the alternative to conventional insurance. The Islamic principles and rulings form a part of Shari'ah and a moral code aimed at promoting fairness and justice.


Take the test to build a knowledge profile of the ethical and moral mode emphasised in financial dealings.


The correct answer of each MCQ can be viewed at the end of the test.


Have a go. Good luck.

1 / 15

What is the role of the Takaful operator (Takaful company) in a Takaful scheme established to provide an alternative to conventional insurance?

2 / 15

The teachings and living example of the Prophet Mohammad is known as

3 / 15

Which statement accurately reflects the ethical consideration in Takaful (Islamic insurance) compared to conventional insurance?

4 / 15

The quote "The rulers, being aware that their power rests upon their wealth, refuse to curtail by law the extravagance of the spendthrift youth because they gain by their ruin; they take interest from them and buy up their estates and thus increase their own wealth and importance......”, is from

5 / 15

Why is excessive risk or uncertainty (Gharar) prohibited in Islamic banking transactions?

6 / 15

Why is conventional life insurance generally objected to in Islam?

7 / 15

What is the basis of Islamic insurance?

8 / 15

The broad framework for Islamic financial system is a set of rules and guiding principles collectively known as

9 / 15

Which fundamental Islamic principle is not followed in investing funds by conventional insurance companies?

10 / 15

Wadiah, an Arabic term, in Islamic banking refers to

11 / 15

Islamic commercial law relating to financial dealings encourages

12 / 15

The primary source of the principles and practices in Islamic banking are derived from

13 / 15

What is the Islamic banking alternative to avoiding Gharar (excessive uncertainty) in contracts?

14 / 15

In Islamic banking and finance, what principle makes conventional bonds generally unacceptable?

15 / 15

In Shari’ah-compliant banking (Islamic banking), what is the status of investment in businesses like the manufacture and sale alcohol and casinos that promote gambling?

Your score is

The average score is 56%


Islamic Finance Qualifications