Question 1

What is the role of the Brand Owner in a credit card transaction?

Accepted Answer

Provides the brand, infrastructure, and systems

Answer

Manages customer accounts

Answer

Provides credit card facility to cardholders

Answer

Signs up merchants to accept payments

Question 2

Who is responsible for signing up merchants to accept credit card payments?

Accepted Answer

Acquirer

Answer

Brand Owner

Answer

Card Issuer

Answer

Cardholder

Question 3

Which party in a credit card transaction provides the credit card facility to the cardholder?

Accepted Answer

Card Issuer

Answer

Merchant

Answer

Settlement Bank

Answer

Acquirer

Question 4

Who among the following is a customer of the Card Issuer?

Accepted Answer

Cardholder

Answer

Merchant

Answer

Brand Owner

Answer

Acquirer

Question 5

What is the role of the Settlement Bank in a credit card transaction?

Accepted Answer

Maintains settlement accounts for Brand Owner, Card Issuer, and Acquirer

Answer

Provides payment infrastructure

Answer

Manages customer service

Answer

Issues credit cards

Question 6

According to the OIC Fiqh Council, what defines an Islamic credit card?

Accepted Answer

A document issued by a bank allowing deferred payment for purchases

Answer

A prepaid card only

Answer

A card with high interest rates

Answer

A card that must always involve interest

Question 7

What does the Fiqh Council specify about the issuance of Islamic credit cards?

Accepted Answer

They can include fees but not interest

Answer

They must include interest imposition

Answer

They should not be issued at all

Answer

Only non-Muslims can use them

Question 8

What is not permissible under Islamic credit card agreements according to the Islamic Fiqh Council?

Accepted Answer

Imposition of interest

Answer

Issuing cards without fees

Answer

Charging a flat fee

Answer

Taking a commission from the merchant

Question 9

In the context of Shariah compliance, what must the subject matter of a contract have?

Accepted Answer

Must be legally owned and bring benefit

Answer

Must be insured

Answer

Must be perishable

Answer

Only commercial value

Question 10

What unique feature does an Islamic credit card offer compared to a conventional one?

Accepted Answer

Transactions backed by cash held in an account

Answer

Interest on delayed payments

Answer

Higher credit limits

Answer

Unlimited cash withdrawals

Question 11

What is Bay’ Al-Inah in the context of Islamic banking?

Accepted Answer

Sale and immediate buyback of an asset

Answer

A guarantee of payment

Answer

A long-term loan

Answer

A profit-sharing agreement

Question 12

What is Qardhul Hassan in Islamic finance?

Accepted Answer

A benevolent loan without charges or fees

Answer

An interest-based loan

Answer

A fee-based credit facility

Answer

A type of insurance

Question 13

What restriction does Islamic credit card impose on transactions?

Accepted Answer

Transactions that are halal

Answer

Only transactions in certain currencies

Answer

Transactions only in specific countries

Answer

Only large transactions

Question 14

How do Islamic banks handle late payment penalties?

Accepted Answer

Penalties go to charity

Answer

Penalties are reinvested in the bank

Answer

There are no penalties

Answer

Apply high interest rates

Question 15

What is the stance of Islamic credit cards on the credit limit fees?

Accepted Answer

Fees must reflect the market price of the services and not tied to the credit limit

Answer

No fees are charged at all

Answer

Fees are usually lower than conventional cards

Answer

Fees are typically higher than conventional cards

Question 16

What is a Letter of Guarantee in Islamic Trade Finance?

Accepted Answer

A definitive undertaking by a bank to pay a sum if requested within a stipulated time

Answer

A document verifying the shipment of goods

Answer

A letter requesting goods delivery

Answer

A commitment to perform a trade transaction

Question 17

What is Documentary Credit in the context of Islamic Trade Finance?

Accepted Answer

A written undertaking by a bank to pay the exporter upon presentation of specified documents

Answer

A legal document stating the terms of a partnership

Answer

Documentation for verifying goods condition

Answer

An agreement to share profits from goods sold

Question 18

What does the Wakala model in Islamic Trade Finance involve?

Accepted Answer

A customer appointing the bank as an agent to execute transactions

Answer

A fixed profit rate on the resale of goods

Answer

A direct loan to the customer for purchasing goods

Answer

The bank buying goods for its own portfolio

Question 19

In the Musharakah model of Documentary Credit, how are profits handled?

Accepted Answer

Profits are shared between the bank and the customer as per agreed ratios

Answer

The bank takes a small service fee, no profit sharing

Answer

Profits are fixed by the bank

Answer

All profits go to the customer

Question 20

What is the Mudaraba Model in Islamic Trade Finance?

Accepted Answer

A partnership where the bank provides funds while the customer manages the trade

Answer

The bank guarantees the customer’s credit

Answer

A cost-plus-profit sale of goods

Answer

An interest-based lending model

Question 21

What characterizes the Murabaha model in Islamic Trade Finance?

Accepted Answer

The bank buys goods and sells them to the customer at a price including a profit margin

Answer

The bank and customer share the risk equally

Answer

Transactions based solely on interest payments

Answer

A lease-to-own agreement for goods

Question 22

How does Islamic Trade Finance typically handle late payment fees?

Accepted Answer

Fees, if charged, are donated to charity

Answer

High interest rates are applied

Answer

Fees are compounded and added to the principal

Answer

Fixed fees regardless of the delay length

Question 23

What is the primary ethical consideration in Islamic Trade Finance?

Accepted Answer

Guaranteeing that transactions are free from interest (usury)

Answer

Ensuring all products are environmentally friendly

Answer

Only dealing with other Islamic entities

Answer

Making sure that the bank has a majority stake in any deal

Question 24

Which of the following is not allowed in Islamic Trade Finance?

Accepted Answer

Charging interest on loans

Answer

Engaging in speculative transactions

Answer

Using a Letter of Credit to facilitate trade

Answer

Profit sharing between the bank and the customer

Question 25

What role does the Advising Bank play in a Documentary Credit arrangement under the Islamic LC Musharaka model?

Accepted Answer

It pays the seller on behalf of the Islamic bank using funds from both the bank and the customer

Answer

It acts as a mediator between buyer and seller

Answer

It provides legal advice on the trade agreement

Answer

It collects fees for processing the LC

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