Islamic History MCQs

Islamic Finance – Islamic Social Finance Online MCQs with Answer

The following are Islamic Finance – Islamic Social Finance MCQs with answers related to Islamic Studies. We have arranged the most important and repeated MCQs in all the competitive examinations. The students can clear their concepts for Islamic Finance – Islamic Social Finance MCQs online quiz by attempting these.

Islamic Finance – Islamic Social Finance Online MCQs with Answers

What is the term for the obligatory almsgiving in Islam?

A) Zakat.
B) Sadaqah.
C) Waqf.
D) Takaful.

Answer
A) Zakat.

Which form of Islamic social finance involves voluntary charity or acts of kindness?

A) Zakat.
B) Sadaqah.
C) Waqf.
D) Mudarabah.

Answer
B) Sadaqah.

What is the Islamic concept of Waqf primarily associated with?

A) Interest-based banking.
B) Endowment and charitable foundations.
C) Insurance.
D) Islamic bonds.

Answer
B) Endowment and charitable foundations.

Which type of Waqf involves donating a specific asset, such as a property or land, for charitable purposes?

A) Family Waqf.
B) Public Waqf.
C) Cash Waqf.
D) Real Property Waqf.

Answer
D) Real Property Waqf.

What is the term for the practice of pooling funds to provide interest-free loans to those in need, typically on a rotating basis?

A) Zakat.
B) Sadaqah.
C) Qard al-Hasan.
D) Takaful.

Answer
C) Qard al-Hasan.

Which form of Islamic social finance involves cooperative insurance that adheres to Sharia principles?

A) Zakat.
B) Sadaqah.
C) Qard al-Hasan.
D) Takaful.

Answer
D) Takaful.

What is the primary purpose of Zakat?

A) Providing interest-based loans.
B) Supporting charitable foundations.
C) Almsgiving to the poor and needy.
D) Speculative trading.

Answer
C) Almsgiving to the poor and needy.

Which Islamic finance concept emphasizes mutual assistance and cooperation within the community?

A) Takaful.
B) Sadaqah.
C) Waqf.
D) Mudarabah.

Answer
A) Takaful.

In Islamic social finance, what is the primary source of funds for charitable activities?

A) Interest-based loans.
B) Government subsidies.
C) Donations from the wealthy.
D) Speculative investments.

Answer
C) Donations from the wealthy.

What is the term for the practice of providing interest-free loans to entrepreneurs and small businesses to support economic development?

A) Zakat.
B) Sadaqah.
C) Qard al-Hasan.
D) Takaful.

Answer
C) Qard al-Hasan.

Which type of Zakat is obligatory on Muslims’ annual savings and investments?

A) Zakat al-Fitr.
B) Zakat al-Mal.
C) Zakat al-Adha.
D) Zakat al-Khair.

Answer
B) Zakat al-Mal.

What is the purpose of a Qard al-Hasan loan in Islamic finance?

A) Generating profits for lenders.
B) Providing interest-based loans.
C) Supporting those in need with an interest-free loan.
D) Speculative trading.

Answer
C) Supporting those in need with an interest-free loan.

Which Islamic finance concept encourages risk-sharing and cooperative ventures?

A) Takaful.
B) Sadaqah.
C) Qard al-Hasan.
D) Tawarruq.

Answer
A) Takaful.

What is the primary goal of Takaful?

A) Speculative trading for quick profits.
B) Providing interest-based loans.
C) Offering cooperative insurance in compliance with Islamic principles.
D) Maximizing shareholder wealth.

Answer
C) Offering cooperative insurance in compliance with Islamic principles.

In Islamic finance, what is the role of Sadaqah?

A) Providing interest-based loans.
B) Voluntary charitable donations and acts of kindness.
C) Speculative trading in financial markets.
D) Wealth accumulation through interest.

Answer
B) Voluntary charitable donations and acts of kindness.

What is the primary purpose of a cash Waqf?

A) Providing interest-based loans.
B) Supporting charitable foundations.
C) Donating a specific amount of cash to a charitable cause.
D) Speculative trading.

Answer
C) Donating a specific amount of cash to a charitable cause.

Which form of Waqf is established by an individual or a family for the benefit of specific beneficiaries?

A) Public Waqf.
B) Family Waqf.
C) Cash Waqf.
D) Real Property Waqf.

Answer
B) Family Waqf.

In Islamic social finance, what is the primary purpose of Qard al-Hasan?

A) Earning interest on loans.
B) Supporting charitable foundations.
C) Providing interest-free loans to those in need.
D) Speculative trading.

Answer
C) Providing interest-free loans to those in need.

Which type of Zakat is obligatory on Muslims during the holy month of Ramadan?

A) Zakat al-Fitr.
B) Zakat al-Mal.
C) Zakat al-Adha.
D) Zakat al-Khair.

Answer
A) Zakat al-Fitr.

What is the term for the practice of donating a portion of one’s wealth to the poor and needy in Islam?

A) Zakat.
B) Sadaqah.
C) Waqf.
D) Takaful.

Answer
A) Zakat.

Which Islamic finance concept involves the creation of an endowment for the long-term benefit of a specific cause or institution?

A) Qard al-Hasan.
B) Takaful.
C) Zakat.
D) Waqf.

Answer
D) Waqf.

What is the primary goal of Mudarabah in Islamic finance?

A) Earning interest on investments.
B) Speculative trading in financial markets.
C) Sharing profits and losses between capital providers and entrepreneurs.
D) Supporting charitable foundations.

Answer
C) Sharing profits and losses between capital providers and entrepreneurs.

In Islamic social finance, what is the role of a Qard al-Hasan lender?

A) Generating profits from interest.
B) Providing charitable donations.
C) Offering interest-free loans to those in need.
D) Speculative trading.

Answer
C) Offering interest-free loans to those in need.

What is the primary purpose of a Public Waqf?

A) Donating property to individuals.
B) Supporting charitable foundations.
C) Generating profits from real estate.
D) Speculative trading.

Answer
B) Supporting charitable foundations.

In Islamic social finance, what is the primary source of funds for supporting charitable activities?

A) Government subsidies.
B) Interest-bearing loans.
C) Donations from the wealthy.
D) Speculative investments.

Answer
C) Donations from the wealthy.

What is the term for the practice of providing interest-free loans to entrepreneurs and small businesses to support economic development?

A) Zakat.
B) Sadaqah.
C) Qard al-Hasan.
D) Takaful.

Answer
C) Qard al-Hasan.

Which Islamic finance concept emphasizes risk-sharing and cooperative ventures?

A) Takaful.
B) Sadaqah.
C) Waqf.
D) Mudarabah.

Answer
A) Takaful.

In Islamic social finance, what is the primary purpose of Sadaqah?

A) Providing interest-based loans.
B) Voluntary charitable donations and acts of kindness.
C) Speculative trading in financial markets.
D) Wealth accumulation through interest.

Answer
B) Voluntary charitable donations and acts of kindness.

What is the primary goal of Takaful in Islamic finance?

A) Speculative trading for quick profits.
B) Providing interest-based loans.
C) Offering cooperative insurance in compliance with Islamic principles.
D) Maximizing shareholder wealth.

Answer
C) Offering cooperative insurance in compliance with Islamic principles.

Which form of Waqf is established by an individual or a family for the benefit of specific beneficiaries?

A) Public Waqf.
B) Family Waqf.
C) Cash Waqf.
D) Real Property Waqf.

Answer
B) Family Waqf.

In Islamic social finance, what is the primary purpose of Qard al-Hasan?

A) Earning interest on loans.
B) Supporting charitable foundations.
C) Providing interest-free loans to those in need.
D) Speculative trading.

Answer
C) Providing interest-free loans to those in need.

What is the purpose of Zakat al-Fitr in Islamic finance?

A) Providing interest-based loans.
B) Supporting charitable foundations.
C) Offering an obligatory charity at the end of Ramadan.
D) Speculative trading.

Answer
C) Offering an obligatory charity at the end of Ramadan.

Which Islamic finance concept involves cooperative insurance that adheres to Sharia principles?

A) Zakat.
B) Sadaqah.
C) Qard al-Hasan.
D) Takaful.

Answer
D) Takaful.

What is the primary purpose of Waqf in Islamic finance?

A) Speculative trading for quick profits.
B) Providing interest-based loans.
C) Creating endowments for charitable purposes.
D) Maximizing shareholder wealth.

Answer
C) Creating endowments for charitable purposes.

In Islamic social finance, what is the role of a Qard al-Hasan lender?

A) Generating profits from interest.
B) Providing charitable donations.
C) Offering interest-free loans to those in need.
D) Speculative trading.

Answer
C) Offering interest-free loans to those in need.

What is the term for the practice of donating a portion of one’s wealth to the poor and needy in Islam?

A) Zakat.
B) Sadaqah.
C) Waqf.
D) Takaful.

Answer
A) Zakat.

Which type of Zakat is obligatory on Muslims during the holy month of Ramadan?

A) Zakat al-Fitr.
B) Zakat al-Mal.
C) Zakat al-Adha.
D) Zakat al-Khair.

Answer
A) Zakat al-Fitr.

What is the primary goal of Mudarabah in Islamic finance?

A) Earning interest on investments.
B) Speculative trading in financial markets.
C) Sharing profits and losses between capital providers and entrepreneurs.
D) Supporting charitable foundations.

Answer
C) Sharing profits and losses between capital providers and entrepreneurs.

In Islamic social finance, what is the primary purpose of Sadaqah?

A) Providing interest-based loans.
B) Voluntary charitable donations and acts of kindness.
C) Speculative trading in financial markets.
D) Wealth accumulation through interest.

Answer
B) Voluntary charitable donations and acts of kindness.

What is the primary purpose of a cash Waqf?

A) Providing interest-based loans.
B) Supporting charitable foundations.
C) Donating a specific amount of cash to a charitable cause.
D) Speculative trading.

Answer
C) Donating a specific amount of cash to a charitable cause.

Which form of Waqf is established by an individual or a family for the benefit of specific beneficiaries?

A) Public Waqf.
B) Family Waqf.
C) Cash Waqf.
D) Real Property Waqf.

Answer
B) Family Waqf.

In Islamic social finance, what is the primary purpose of Qard al-Hasan?

A) Earning interest on loans.
B) Supporting charitable foundations.
C) Providing interest-free loans to those in need.
D) Speculative trading.

Answer
C) Providing interest-free loans to those in need.

What is the purpose of Zakat al-Fitr in Islamic finance?

A) Providing interest-based loans.
B) Supporting charitable foundations.
C) Offering an obligatory charity at the end of Ramadan.
D) Speculative trading.

Answer
C) Offering an obligatory charity at the end of Ramadan.

Which Islamic finance concept involves cooperative insurance that adheres to Sharia principles?

A) Zakat.
B) Sadaqah.
C) Qard al-Hasan.
D) Takaful.

Answer
D) Takaful.

What is the primary purpose of Waqf in Islamic finance?

A) Speculative trading for quick profits.
B) Providing interest-based loans.
C) Creating endowments for charitable purposes.
D) Maximizing shareholder wealth.

Answer
C) Creating endowments for charitable purposes.

In Islamic social finance, what is the role of a Qard al-Hasan lender?

A) Generating profits from interest.
B) Providing charitable donations.
C) Offering interest-free loans to those in need.
D) Speculative trading.

Answer
C) Offering interest-free loans to those in need.

What is the term for the practice of donating a portion of one’s wealth to the poor and needy in Islam?

A) Zakat.
B) Sadaqah.
C) Waqf.
D) Takaful.

Answer
A) Zakat.

Which type of Zakat is obligatory on Muslims during the holy month of Ramadan?

A) Zakat al-Fitr.
B) Zakat al-Mal.
C) Zakat al-Adha.
D) Zakat al-Khair.

Answer
A) Zakat al-Fitr.

What is the primary goal of Mudarabah in Islamic finance?

A) Earning interest on investments.
B) Speculative trading in financial markets.
C) Sharing profits and losses between capital providers and entrepreneurs.
D) Supporting charitable foundations.

Answer
C) Sharing profits and losses between capital providers and entrepreneurs.

In Islamic social finance, what is the primary purpose of Sadaqah?

A) Providing interest-based loans.
B) Voluntary charitable donations and acts of kindness.
C) Speculative trading in financial markets.
D) Wealth accumulation through interest.

Answer
B) Voluntary charitable donations and acts of kindness.

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