amount of profit in a commercial contract
(d)All of the above
2.The economic rationale of prohibiting Gharar is to avoid:
(a)Uncertainty in the contract
(b)Adverse selection
(c)Any party gaining some additional return
(d)Both (a) and (b)
3.Prohibition of Maysir implies that:
(a)Gambling and lottery are disallowed
(b)All credit sales are disallowed
(c)All types of speculative trades on forecasts are disallowed
(d)All of the above
4.In a direct potential exchange between saving-surplus and saving-deficient units, there is a problem of
(a)Double coincidence of wants in terms of matching cash flow needs
(b)Matching preference for maturity in investment and financing
(c)Both (a) and (b)
(d)None of the above
5.Takaful is an Islamic alternative of insurance which avoids
(a)Riba
(b)Maysir
(c)Both (a) and (b)
(d)None of the above
Self-Assessment Questions
1.List any two examples of goods and services that are not Halal in terms of (i) consumption and (ii) investment.
2.List any five means of earning income that are not permissible in Islamic economics.
3.List the five important elements in the hierarchy of needs in Islamic jurisprudence.
4.Define the term Riba. How does bank interest constitute Riba?
5.Illustrate the Islamic finance ecosystem by identifying institutions in Islamic commercial finance and Islamic social finance.
6.What is the size of assets in (i) Islamic banking, (ii) Islamic asset management, and (iii) Takaful globally.
7.Differentiate between Zakat, Waqf, and Sadaqah.
8.How is Takaful different from conventional insurance?
9.Identify social welfare projects which can be funded by mobilizing funds through Cash Waqf.
10.Briefly explain the economic demerits of Gharar and Maysir in economic activities.
__________________
1 Al-Qur’an, Al-Baqarah: 276.
2 Al-Qur’an, Al-Baqarah: 188.
3 Al-Qur’an, Al-Mutaffifeen: 1–4.
4 Al-Qur’an, Al-Maida: 90.
5 Al-Qur’an, Al-Maida: 38.
6 Al-Qur’an, Al-Maida: 90.
7 Al-Qur’an, Al-Nur: 19.
8 Al-Qur’an, Al-Nisa: 29.
9 Jami-al-Tirmizi, Vol. 3, Chapter on Business, Hadith Number 1209.
10 Jami-at-Tirmidhi, Vol. 2, Chapters on Zakat, Hadith Number 680.
11 Sunan Abu Daud, Vol. 2, Book of Zakat, Hadith Number 1648.
12 Jami-at-Tirmidhi, Vol. 2, Chapters on Zakat, Hadith Number 653.
13 Al-Qur’an, Al-Baqarah: 168.
14 Al-Qur’an, Al-Baqarah: 219.
15 Al-Qur’an, Al-Baqarah: 276.
16 Al-Qur’an, Al-Maida: 90.
17 Al-Raysuni, A. (2005). Imam Al-Shatibi’s. Theory of the Higher Objectives and Intents of Islamic Law. Malaysia: The International Institute of Islamic Thought (IIIT).
18 Quoquab, F., Abdullah, N. L. et al. (2015). “Epicureanism & Global Consumerism in Shaping Muslim Buyers’ Consumption Pattern: An Islamic Perspective”, International Journal of Innovation & Business Strategy, 3, 1–12.
19 Al-Qur’an, Al Zukhruf: 32.
20 Al-Qur’an, Al-Baqarah: 188.
21 Al-Qur’an, Al-Nisa: 29.
22 Al-Qur’an, Al-Bani-Israel: 35.
23 Al-Qur’an, Al-Mutaffifin: 1–4.
24Al-Qur’an, Al-Maida: 1.
25 Al-Qur’an, Al-Tauba: 34.
26 Al-Qur’an, Al-Nahl: 92.
27 Al-Qur’an, Al-Baqarah: 282.
28 Sunan Ibn-e-Maja, Vol. 3, Chapters on Charity, Hadith Number 2410.
29 Sahih Bukhari, Vol. 3, Book of Sales, Hadith Number 2076.
30 Sunan Ibn-e-Maja, Vol. 3, Chapter on Business Transactions, Hadith Number 2246.
31 Sahih Bukhari, Vol. 3, Book of Sales, Hadith Number 2079.
32 Sahih Bukhari, Vol. 3, Book of Watering, Hadith Number 2356.
33 Sahih Muslim, Vol. 4, Book of Marriage, Hadith Number 3459.
34 Sahih Muslim, Vol. 4, Book of Financial Transactions, Hadith Number 3821.
35 Sahih Muslim, Vol. 4, Book of Financial Transactions, Hadith Number 3836.
36 Sahih Bukhari, Vol. 3, Book of Hiring, Hadith Number 2270.
37 Sunan Ibn-e-Maja, Vol. 3, Book of Pawning, Hadith Number 2443.
38 Sahih Bukhari, Vol. 3, Book of Manumission, Hadith Number 2545.
