Islamic Studies/Islamiat (Competitive Exams) MCQs
Topic Notes: Islamic Studies/Islamiat (Competitive Exams)
<p>MCQs and preparation resources for competitive exams, covering important concepts, past papers, and detailed explanations.</p>
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
141
In Islamic finance, what does 'Tawarruq' refer to?
Answer:
A sale arrangement for obtaining liquidity
Tawarruq allows liquidity through sequential sales of a commodity, used under strict Shariah conditions.
142
What is the ethical foundation of Islamic finance?
Answer:
Tawheed and accountability to Allah
Islamic finance is grounded in Tawheed (unity of Allah) and moral accountability.
143
Which Shariah principle requires clarity in all contracts?
Answer:
Avoidance of Gharar
Contracts must be transparent to prevent gharar (ambiguity) and ensure fairness.
144
Which of the following is a moral objective of Islamic banking?
Answer:
Social justice and equitable distribution of wealth
Islamic banking serves socio-economic justice and equitable growth, not mere profits.
145
What distinguishes Islamic finance from capitalism?
Answer:
Moral and spiritual accountability
Islamic finance integrates moral responsibility with economic activity.
146
What is the foundation of all Islamic economic transactions?
Answer:
Justice (‘Adl) and mutual consent
Justice and consent underpin Islamic contracts, ensuring fairness and transparency.
147
What is the Shariah view on speculation?
Answer:
Prohibited as it involves uncertainty and gambling
Speculation is prohibited due to gharar and maisir elements, causing injustice and loss.
148
What is 'Arbun' in Islamic finance?
Answer:
Earnest money or down payment in sale
Arbun is a down payment made as part of a sale, with conditions approved by some scholars.
149
Which Islamic contract is used in home financing?
Answer:
Murabahah or Ijara wa Iqtina
Home financing is commonly structured via Murabahah (sale) or Ijara wa Iqtina (lease-to-own).
150
What is the meaning of 'Halal profit'?
Answer:
Earnings obtained lawfully under Shariah
Halal profit is income obtained through Shariah-compliant trade and effort.