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AMIT KAUNTIA

ID NO- PGDIBF/914/13/E
RV 13
POST GRADUATE DIPLOMA IN ISLAMIC BANKING AND FINANCE
ASSIGNMENTS FOR MODULEVI
SECTION ONE
Each quest!" ca##es $ Ma#%s& '( )uest!"s * $ Ma#%s + 1, Ma#%s-
A"s.e# " FOUR !# FIVE /"es !"/0&
1. What are Investment funds established for and what are the different types of
assets they can invest in ?
2. What are the types of assets an investor can invest in ? Describe them.
3. Define the TH!! main factors drivin" the "rowth of #lobal Islamic private
e$uity industry.
%. &ame the TH!! main ma'or measurement parameters to be ta(en into account
while considerin" investment in Islamic private e$uity.
). &ame the TH!! Islamic *hari+ah contracts on which Islamic credit cards are
based.

SECTION T1O
Each 2t ca##es 1 Ma#%& '$, )uest!"s * 1 Ma#% + $,
Ma#%s-
Match the 3!//!."4 20 se/ect"4 the a"s.e#s 5atch"4 3#!5 the #4ht c!/u5"
a"6 "se#t the "u52e# " the 2#ac%et 7#!86e6&
,irst evelation in the -uran about iba . / 1. Interest ate is(

,araidh . / 2. *urah 0l 1a$ara
0l Wa$f . / 3. 2and ta3

4*4 . / %. -uran 5ommentator and
Hanafi 6urist
*7878 . / ). Industrial finance
Islamic 5redit 5ard . / 9. *tate owned Investment
fund
5ate"ories of 5ommodities . / :. Decline in 1an(+s net
cash flow
5ontract .0-D/ . / ;. ,i$h al <uamalat
*W, . / =. Wadiah
>ne of the elements of Islamic contracts . / 1?. 1ai+ al Inah
0bu 1a(ar 0l 6assas . / 11. <eanin" to hold@ prohibit

8hara' . / 12. *urah 0l um
Istisnaa . / 13. Inheritance
is( mana"ement . / 1%. <udarabah
,ourth evelation . / 1). *oft or Hard
5ontract of *afe 5ustody . / 19. >ffer and acceptance
2i$uidity ris( . / 1:. 0l #harar
7nilateral contract . / 1;. Islamic Investment
certificates
-ardAeAHassan . / 1=. 1enevolent loan
*peculation and e3cessive ris( . / 2?.Wa+ad

SECTION T9REE
Each 2t ca##es 1 Ma#%& '$, )uest!"s * 1 Ma#% + $,
Ma#%s-
F// u7 the 2/a"%s .th a77#!7#ate .!#6s&
1. ,ourth evelation in the Holy -uran is BB.BBB .
2. The four scholars of Islamic 'urisprudence are BBB.@ BBBB..@ BBB. and
BBBB. .

3. Well (nown -uran 5ommentators and 4hilosophers are BBB.B@ BBBB .
%. Due to universality of Islam@ it+s economic system should be BBBB.. .
). Ca(ah used to free slaves BBBBB .
9. ent of land BBBBB.. B BBB.. .
:. <urabaha is a form of BBB BBBB or BBBBB BBB.. .
;. 4rofit and 2oss sharin" principle is related to BBBBBB principle .
=. BBBBB. are also defined as Islamic Investment certificates.
1?. BBBB.. BBBB BBBB are issued on stand alone assets identified on
the 1alance *heet.
11. 5ommodities can be divided into two cate"ories@ they areBBB. and BB... .
12. Investors today have various BBBB. BBBB.. .
13. Islamic wealth mana"ement and ,und mana"ement first emer"ed in BBBB .
1%. 4rivate e$uity investment refers to BBBB BBBB. BBBB. .
1). BBBBB.. is an Islamic insurance concept "rounded in Islamic BB..BB .
19. BBBBB is also (nown as Islamic 0rab Insurance 5o .4D5/.
1:. Islamic credit cards adopt three *hari+ah 5ontracts@ they are BBBB BBB.
BBBB.. .
1;. BBBBB. BBBBB provided to a first "eneration <icro !ntrepreneur
is (nown as BBBB.. BBBBB. BBBBB .
1=. is( can be defined as the BBBB.. or BB..BB.. of une3pected outcomes.
2?. 0t the level of enterprises@ ris( can be "rouped into BBBB BBB. BB..

SECTION FOUR
Each 2t ca##es 1 Ma#%& '$, )uest!"s * 1 Ma#% + $,
Ma#%s-
State .hethe# the 3!//!."4 state5e"ts a#e T#ue !# Fa/se&

1. The Islamic !conomic system is not a part and parcel of the social system.
. /
2. In Islam the role of the state is either "uardin" the state or totalitarian. . /
3. Three ma'or "oals of distributive 'ustice in Islam are #uarantee@ edistribution
and 4urification. . /
%. 7nder Islamic 2aw of Inheritance@ the ratio of inheritance for each heir is not
fi3ed and can (eep chan"in". . /
). The three types of 0l Wa$f are eli"ious@ 4hilanthropic and ,amily. . /

9. 7shr is collected from the "old 'ewellery and cash of individuals. . /
:. 7nder operational lease@ the assets usually have a hi"h de"ree of mar(etability.
. /
;. In <uEara@ the land owner cannot cultivate his land or wor( on it. . /

=. In a *alam contract@ the delivery of forward purchase item should be immediate.
. /
1?. In Islamic ban(s@ current accounts are based on the principle of 0l Wadiah.
. /

11. 4rofit sharin" principle is based on <udarabah principle. . /
12. *u(u( are asset bac(ed securities also (nown as Islamic investment
certificates. . /
13. Investors can invest in physical and financial assets. . /
1%. Islamic investors can invest in any activity and not only in *hari+ah 5ompliant
investments. . /
1). #old @ oils@ metals and minerals are (nown as soft commodities. . /

19. >ne of the factors drivin" "rowth of "lobal Islamic private e$uity investments
is healthy economic "rowth. . /
1:. 5redit card is usually used as an essential mode of payment in today+s society.
. /
1;. 5redit card concept is not allowed by *hari+ah as it involves the element of
iba. . /
1=. ,inancial ris( is the additional ris( a share holder bears when a company uses
debt in addition to e$uity finance. . /
2?. 5redit ris( can be accurately calculated before the event. . /

SECTION FIVE
Each 7#!2/e5 ca##es 1, Ma#%s& '$ P#!2/e5s * 1, Ma#%s + $, Ma#%s-
I& <r.0li approaches Dubai Islamic 1an( to provide him financial assistance to
avail a F>2F> <ulti 03le 2u3ury 5oach from the 5ompany+s showroom. 0s
the mana"er of the 1an( you have to e3plain to him the characteristics of I'arah
Wa+ I(tina and compare the salient features of this transaction as compared with
the conventional ban( finance. *how him the wor( out with the followin"
detailsG
0ll calculations to be in 70! Dirhams H 0!D.
a. Invoice price of the Folvo 5oach on road 0!D 3??@???
b. 4eriod of lease 9? <onths
c. 2ease rent schedule of the 1an( 0!D 2) per 0!D 1??? cost of asset
d. Initial deposit 2? I
Jou have to wor( out theG
A <onthly lease rent and total lease rent payment.
A 0mount paid over and above the &et lease finance availed.
A Transfer of asset+s ownership at the end of lease period.
A With whom will the ownership of asset be durin" the period of lease.
II& <r. *mith approaches Islamic 1an( of 1ritain@ 2eicester 1ranch@ 7.8 to assist
him in buyin" a ,ord ,iesta <otor 5ar. He is to be e3plained the principle of
<urabaha and how does it differ from conventional ban( loan. The details of
the 1an(+s motor car scheme are as underG
0ll calculation in #14 .#reat 1ritain 4ounds/.
a. Invoice price of the car on road #14 )?@???
b. Term 39 <onths
c. <ar( 7p 2? I
d. Initial 4ayment 2? I
Inform the <onthly installments to be paid@ >ffer Ta(aful Insurance 4olicy
with details and the amount over and above the net finance availed.
SECTION SI*
Each 2t ca##es $ Ma#%s& '( )uest!"s * $ Ma#%s + 1, Ma#%s-
G8e" 2e/!. a#e 38e 2ts .he#e 0!u ha8e t! ethe# AGREE !# DISAGREE
.th :ust3cat!"&
1. Islamic private e$uity has certain barriers when compared to conventional
private e$uity.
2. The first pillar of 1asel II deals with the maintenance of re"ulatory capital
calculated for three ma'or components of ris( that a ban( faces.

3. The most important sta(e holder in the case of Islamic finance is finance itself.


%. 2ease operations transfer the ownership of the asset and also the benefits.

). ,unds are investment vehicles which are financially independent of the
institutions that establish them.

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