Multiple Choice Questions Circle the letter next to the most accurate answer

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Multiple Choice Questions

Circle the letter next to the most accurate answer.

Which one below is not a requirement of Shariah-compliant investment?

• Avoid all forms of Riba
• Avoid speculative investments
• Take no risk
• Be involved in socially responsible and ethical investing

Which one below is not a responsibility of the Islamic fund manager?

• Select investment instruments that are devoid of Riba, Gharar and Maysir
• Ensure the investment process does not involve any Shariah-prohibited elements
• Commit a reasonable return to their clients
• The contract signed with the client must follow Shariah guidelines

The most prominent Islamic indices are:

• Dow Jones Islamic Market Index
• FTSC Global Islamic Index
• S&P Global Investable Shariah Index
• All of the above

The Shariah screening process for stock selection involves:

• Industry screening
• Financial screening
• Income purification
• All of the above 

Islamic investment funds can invest in the following instruments:

• Corporate bonds
• Treasury bills
• Certificates of deposit
• None of the above

Which one below cannot be an Islamic investment fund?

• Ijara fund
• Derivatives fund
• Venture capital fund
• I-REIT

Which fund below is formed with private limited companies with a few large individual or institutional investors?

• Islamic private equity fund
• Islamic venture capital fund
• Islamic debt fund
• Ijara fund

Which characteristic below is common to both a private equity fund and a venture capital fund?

• Not traded on exchanges
• Existing privately owned companies
• Provide funding to promising new and start-up businesses
• All of the above

Which Islamic product is a certificate of equal value representing undivided ownership shares in tangible assets, usufructs and services, specific projects or special investment activity?

• Ijara funds
• Sukuk
• Shariah-screened stocks
• Waqf funds

Common benefits shared by Sukuks and conventional bonds include:

• Liquidity management
• Issuer profile enhancement
• Diversification of funding source
• All of the above

Classifications of Sukuks include:

• Tradable and non-tradable
• Short term and long term
• Debt-based and equity-based
• a and c

Which one below is not a tradable Sukuk?

• Murabaha Sukuk
• Ijara Sukuk
• Mudaraba Sukuk
• Musharaka Sukuk 

Which one below is not a type of Ijara Sukuk?

• Sukuk of ownership in leased assets
• Sukuk of ownership of usufructs of assets
• Sukuk of ownership of services
• Sukuk of ownership of bonds

The two most popular classifications of bonds and Sukuks related to investment quality are:

• Investment grade bonds and junk bonds
• Corporate bonds and government bonds
• Investment grade bonds and sovereign bonds
• None of the above