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
181
What is 'Murabahah' financing?
Answer:
Cost-plus sale where the price and profit margin are disclosed
Murabahah involves selling goods at a known profit margin, ensuring transparency and Shariah compliance.
182
What is the main feature of a 'Musharakah' contract?
Answer:
Joint partnership where all partners contribute capital
Musharakah is a joint venture where partners contribute capital and share profit or loss according to a pre-agreed ratio.
183
What does 'Mudarabah' mean in Islamic finance?
Answer:
Profit-sharing partnership
Mudarabah is a partnership where one party provides capital and the other managerial expertise, sharing profits per agreement.
184
Which of the following is a key difference between Islamic and conventional banking?
Answer:
Prohibition of interest in Islamic banking
Islamic banking prohibits interest and is based on profit-and-loss sharing principles.
185
What does the Arabic term 'Riba' mean?
Answer:
Interest or usury
Riba refers to any guaranteed increase in a loan or debt without risk-sharing, strictly prohibited in Islam.
186
What is the primary objective of Islamic banking?
Answer:
To operate in accordance with Shariah principles
Islamic banking aims to conduct financial activities consistent with Shariah, avoiding riba (interest), gharar (uncertainty), and haram investments.