Interest Free Banking in Pakistan MCQs

What is the term used for Islamic bonds issued by banks?

A) Sukuk

B) Takaful

C) Wakalah

D) Rahn

What is the primary objective of profit-sharing in Islamic banking?

A) Encourage investment in risky ventures

B) Distribute profits among shareholders

C) Align banking activities with ethical principles

D) Maximize interest income

Which mode of Islamic finance involves pre-arranged sale contracts?

A) Istisna

B) Salam

C) Mudarabah

D) Wakalah

What is the purpose of Shariah compliance in Islamic banking?

A) Ensure higher profits for banks

B) Align banking practices with Islamic principles

C) Limit financial services to specific regions

D) Maximize customer deposits

Which Islamic banking mode involves agency and trusteeship?

A) Mudarabah

B) Wakalah

C) Salam

D) Takaful

What is the primary source of Islamic banking regulations in Pakistan?

A) Federal Reserve Bank

B) State Bank of Pakistan

C) Securities and Exchange Commission

D) Ministry of Finance

Which type of contract in Islamic finance involves future delivery of goods?

A) Murabaha

B) Istisna

C) Mudarabah

D) Musharakah

What is the role of a Mudarib in Islamic finance?

A) Investor

B) Borrower

C) Manager

D) Customer

Which Islamic finance mode involves mutual assistance among participants?

A) Takaful

B) Rahn

C) Wakalah

D) Salam

What is the key feature of Islamic banking related to interest payments?

A) Interest-free loans

B) Fixed interest rates

C) Profit-sharing

D) Variable interest rates