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
151
Which contract allows deferred delivery but advance payment?
Answer:
Salam
Salam is a forward contract with full payment in advance and deferred delivery.
152
What ensures the legitimacy of profit in Islamic finance?
Answer:
Risk-taking and asset involvement
Profit in Islam is lawful only when earned through risk and productive effort.
153
Which of the following represents a charitable trust in Islam?
Answer:
Waqf
Waqf is an endowment made for charitable or religious purposes.
154
What is the role of 'Wakalah' in Islamic banking?
Answer:
Agency contract where one acts on behalf of another
Wakalah refers to agency where an agent is appointed to act in financial transactions.
155
Which principle allows deferred payment sale in Islamic banking?
Answer:
Bai’ Bithaman Ajil
Bai’ Bithaman Ajil is a sale where payment is deferred but price is fixed in advance.
156
Which organization provides global Shariah standards for Islamic finance?
Answer:
AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions)
AAOIFI sets global Shariah and accounting standards for Islamic financial institutions.
157
What type of transaction does Islamic banking avoid?
Answer:
Unethical, interest-based, and speculative
Islamic finance avoids riba, gharar, and maisir-based transactions.
158
What is the Arabic term for speculation or gambling?
Answer:
Maisir
Maisir refers to gambling or speculative behavior, prohibited in Islamic finance.
159
What is the objective of 'Zakat' in Islamic economics?
Answer:
Wealth redistribution and purification
Zakat redistributes wealth to reduce inequality and purify earnings.
160
What is the main Shariah concern with conventional insurance?
Answer:
Elements of Gharar and Riba
Conventional insurance contains gharar (uncertainty) and riba (interest), which violate Shariah.