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- 1. Multiple Choice
What is tawarruq?
Consists of two sale and purchase contracts in which the first involves the sale of an asset by a seller to a purchaser on a deferred basis.
Referred to as cost-plus financing, is an Islamic financing structure in which the seller and buyer agree to the cost and markup of an asset.
A transaction in which the buyer does not know the price paid by the seller to create or obtain the good or service being offered.
A sale and purchase transaction of an asset to be paid on later date (deferred payment) based on a price, which include a profit margin agreed to by both contracting parties.
- 2. Multiple Choice
The following describes key principles for sound management and operationalization of tawarruq EXCEPT?
The IFI shall establish a comprehensive governance and oversight framework to ensure that a tawarruq is conducted based on sound practices and complies with Shariah
The IFI shall provide adequate disclosure and transparency to facilitate stakeholders’ understanding and assessment of a tawarruq.
The IFI shall undertake a tawarruq in a fair and transparent manner in line with Shariah to protect stakeholder’s interest
Promote end-to-end compliance with Shariah requirements which include adherence to sound Islamic banking practices and safeguarding customers’ interest.
- 3. Multiple Choice
When does this policy document comes into effect?
28 December 2019
28 December 2018
27 July 2019
27 July 2018
- 4. Multiple Choice
What are the two distinctive parts contained in this policy document?
Shariah requirements
Operational requirements
Shariah requirements and operational requirements
None of the above
- 5. Multiple Choice
Which of the following assets should NOT be traded in Tawarruq?
Gold, silver and currencies
Assets to be constructed or under construction
Assets which are debt in nature
All of the above
- 6. Multiple Choice
In the occurrence of defect option (khiyar al-`ayb), the purchaser has the right to?
terminate the sale and purchase contract
continue with mutually agreed variation of the terms of the sale and purchase contract as a result of the defect discovered
continue with the sale and purchase contract as it is
All of the above
- 7. Multiple Choice
When is the price used for each sale and purchase contract determined?
Before entering into each of the respective sale and contract
After entering into each of the respective sale and contract
At the time of entering into each of the respective sale and purchase contract.
After delivery of asset
- 8. Multiple Choice
The _________ in each sale and purchase contract in the tawarruq shall have the right to take delivery of the asset.
seller
purchaser
third party
- 9. Multiple Choice
Which of the following is included in the establishment of risk management policies by the IFIs?
I Appropriate pricing methodology of the assets
II Segregation of roles and duties
III Monitoring and reporting mechanism
IV Establish risk exposure limits in line with the IFI’s risk appetite
I and II
I and III
I, II and IV
All of the above
- 10. Multiple Choice
The following are potential Tawarruq risks that the IFIs are exposed to, EXCEPT:
Market risk
Operational risk
Default risk
Credit risk
- 11. Multiple Choice
Which of the following shows the information that must be disclosed by IFIs to its customers?
I Roles and responsibilities of contracting parties
II Name of product
III Computation of fees and charges
IV Purpose of the Tawarruq
III and IV
I and II
I, III and IV
I, II, III and IV
- 12. Multiple Choice
Which of the following criteria that must be assessed by the IFIs before selecting their asset trader or asset exchange is NOT TRUE?
Easy access to trading platform/ exchange
Financial performance
Availability of Shariah compliance oversight function
Adequate delivery capacity
- 13. Multiple Choice
Who is in responsible to deliberate and endorse that the terms and conditions in documentation is complied with Shariah requirements?
Board of Directors
Shariah Committee
Senior Management
Central Bank of Malaysia
- 14. Multiple Choice
The contracting parties in tawarruq should involve ______ EXCEPT
Asset Trader
Manufacturer
Customer
Islamic Financial Institution
- 15. Multiple Choice
In which condition, the IFI as an agent is not allow to treat the payment (fund received) as qard (loan) when executing tawarruq?
Normal close of business
Unexpected disruptions to operation
Reasonable period required to process application
Health issue of agent
- 16. Multiple Choice
In order to be traded in tawarruq, an asset must sastify the following conditions EXCEPT
Can be objectively valued in the open market
Acceptable contract grade specified by recognised commodity exchange or accepted industry standard
In a good condition before completion of both sale and purchase transactions
Recognised as intangible asset under applicable Malaysian Financial Reporting Standards (MFRS)
- 17. Multiple Choice
Agency contract in which a party mandates another party as his agent to perform a particular task is
Wakalah
Wadiah
Tawarruq
Wa’d
- 18. Multiple Choice
Which refer to a loan contract?
Wakalah
Qard
Rahn
Ta’widh
- 19. Multiple Choice
Which of the following is the pillars of Wakalah?
Agent
Share partners
Capital
Principal
- 20. Multiple Choice
_______ is a unilateral promise which refers to an expression of commitment given by one party to another to perform certain action(s) in the future.
Hibah
Kafalah
Wa’ad
Wadiah
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