Interest Free Banking in Pakistan MCQs

Which type of financing is used for short-term agricultural production in Islamic banking?

A) Murabaha

B) Istisna

C) Salam

D) Musharakah

What is the primary principle behind the concept of Musharakah in Islamic finance?

A) Profit-sharing

B) Fixed returns

C) Interest accumulation

D) Loan repayment

Which Islamic finance mode involves leasing of assets with a purchase agreement?

A) Ijarah

B) Murabaha

C) Musharakah

D) Istisna

What is the primary role of Shariah boards in Islamic banking?

A) Set interest rates

B) Ensure compliance with Islamic principles

C) Manage investment portfolios

D) Provide customer service

Which Islamic finance mode involves depositing funds for safekeeping?

A) Rahn

B) Takaful

C) Wakalah

D) Murabaha

What is the primary role of a Murabaha contract in Islamic finance?

A) Profit-sharing

B) Cost-plus financing

C) Leasing of assets

D) Risk-sharing

Which Islamic banking mode involves collective risk sharing?

A) Takaful

B) Rahn

C) Wakalah

D) Salam

What is the key objective of the Islamic banking system in Pakistan?

A) Maximize interest income

B) Ensure financial inclusion

C) Implement interest-based lending

D) Promote profit-sharing

Which type of financing in Islamic banking involves a sale contract for future delivery?

A) Istisna

B) Mudarabah

C) Musharakah

D) Murabaha

What is the primary function of a Shariah-compliant savings account?

A) Accumulate interest

B) Ensure fixed returns

C) Avoid interest accumulation

D) Maximize investment profits