KOlEJ UNIVERSITI ISLAM ANTARABANGSA SElANGOR

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(365644-V)

DiPLOMA iN ISLAMiC BANKING AND

DiPLOMA IN ECONOMY

FlriAL EX.Af"itr,lATION
SESSiON I, ACADEiy'jiC YEAR 2006/2001

IBB 5013/ISP 5103

ISLAMIC BANKING PRACTICE

INSTRUCTION TO CANDIDATES:

"I. The time allotted for this paper is 3 HOURS.

2 This Question oaoer consists of T'NO sections
SECTION A: 20 Objective questions
SECTION B: 5 Essay questions
3. Answer ALL questions in SECTION A and four questions in SECTION B.
4. This examination pack consists of
i) The Question Paper
ii"' 1\_ r\h; __+-i,,_ ,, __, . . ,_ .... C" ...... __ ...
III T""'\ii """uJv",l,,iYv l\il..:;JVyvl Vllvvi.

iii} An Answer Booklet

THIS QUESTIOt'J PAPER CONSISTS OF 9 PRINTED PAGES.

DO NOT OPEN UNTil ·y·OU ARE TOLD TO DO SO.

SULIT
IBB 50131 IBB 5103 OGOS 2006

Answer ALL questions In the abjedlve answer sheet provided.

-
2. I he qualities of money In a modern society among others, except
A
rr.
riqhiiii\t
~LUuIIILy -
a.
w. dur2biiity.
C. marketaSllity.
0 recognizability

fi
3. .ygcew
. r.2n nniv be issued
J --"' -'"J
n r..i n
.-. t ~ di?rt
.--- ->

,A.. !'.?ersf?ant Bank.

B. Cornmerciai Bank.
..__,. ,----_
C. " l

Dal In lveyal d nlalaysla. - l

s.
- Research and ~e;"e,"pixei3t Di.",s,"it'

A
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a y a ~ ei ~j f,i
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lv~aiaybi~~
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.-
LYPGS fif
L. -- );i-lbijiui/~i-~~,
Gii6 ijf

tne insiiiutio~sin the bar;king system is

LI

A. the non-monetaw institution.

B. the in!and revenue instituticn.

-
-
the higher iearning institution.
r?
w .
the
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h=--,!th
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5n,1 =3fci:i
I UI I" U U l V L J
k = t i l : :tip.+:
11 I.?LIIWLI"11.

SULIT
IBB 50131 IBB 5103 OGOS 2006

5. One of the following principles is for an Islamic bank to use as a guideline in

carrying out their daily operations.
A
, .- Give =ut and receive !:nte:estl
B. Not to involve in social and producti\.le projects.
C. Financia! risk so!e!y with the entrepreneur under the hhsyarahh.
-.
D. I ,..nr-icri
,-,4 risk s r J' -;*rJ; \ iisifh t h i.ai?it&
.-n. --.-a
~r pro\.ii&r ufider th5 Mudharsbah
- d

.,:.
w. !; := t y : s ; z : : = ; z :
TL-. %:~-;.->~~%:-*
;
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= ~. ~ -. * c.%*a**:==
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;L;s;=:;z:=::; :: :z.: & :;:!:!:>E::
-= :
-a
::::g !!-!!:E- !,!!z;!-:
G!.fi::ijS~
A. I . ;!?E:-Z
- -

lire:
A. the capitai markets.
-
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F
i: : : .
. r > z ?.-1c.-!r?' C%IC'a-1!
U. r n I" ""l bn\ar ry """,",I,.

C. ihn nnn-h-nl 6n-n-iqi

:
: s.4 : :-: : ,J-4: ,:\ :,: :: :&-*a
$ 3:-4,-&:
:
iniarrnnrii~rial.
: ::L--&:G::*--.2.

C. all of the abovz.

7. 'W~hichone of the tollawlngs ISnot the tenet for Al-Musyarakah financing?

A ---:+-I
II. I . n ~~4 1 n a
--r*--..

B. pr~jeci.
C. shareholder.
, pre-determined profii raiio.

8. is r ~ f ~ r r i nt.2.
r , ! c l m i +incJ~+~g.
~
A, Credit card
B. High interest
C. u,mpoi;ncl
Pn
interest
D. Interest free banking

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n
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~
A
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a. -
rilZ=-.*-
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=. %
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-- t ~ + I f i
.n

A. Bank Muamalat Bhd.

i a,i--. riii7-i
D
m ~
i51--i.
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?.%
YL-<?
'-ir
:-,A%
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c. .,..,*;+ Fit la1 IU: H O U SLid.
p\uvvair ;---a-
~
D; Sank Simpanan Nasinna! - !slamic '&/inh~l:;.
IBB 50131 IBB 5103 OGOS 2006

10. It is sqid that equity financing is permissibie in islam whiie debt financing is
not allowed in Islam because of its
P,. ca~ita!
B. profit or loss.
C. !!abandkabu!.
E; intersst based :end:no.
a-

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.

-
~ ~= y T <

A: zanks-
B. unit trusts.
n
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-- n :--

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i !: !--? !! !< %.: :: ? ! t ?+
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L'. ;\/?,,~~~-~L\re; ,z?rTinz+bs.

....
II L-3
. which or;e c;f the :'ot[oviings is nst pa:'i of the current account?
A. Cneque.
5. ATnl
n I IV
onrd
b-I.

0 ##..-.----I-
w. iViUijbbhciii.
-u. Bani< staiement .

-.
is. I ne ban^ can interfere in ine running of a business venture if a ctistomer has
a financing facility !.!rider the cnncept nf
A. Al-ljarah.
E. A!-!AusJ/EK~?c&.
C. Al-EW!$d,harabah.
D. A/-Bai-Bithaman-Ajal.

4
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; ;; if
,~ - h2n net
2 cvistn-;^:r

keeping his or her account ier a year.

A, -'---A
,-!,-,>%,d

.E dormant
IBB 50131 IBB 5103 OGOS 2006

C
13.
- is any extra payment on top of tne principal amount upon
expired of the loan.
.A. .A!-.S~.~U
6. Riba a/-Fadiu
C. Riba ai-Nasiah
.- - s;-"i;;',ii;;
,%-;Ea
~~ . jsfj. .=.

" ....
ifi.'hl.-h Y.. ...-
FIfib
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A
fi. Ai-iviiirabajiah,
z. A ! !~z<.JL-s-L.-.L
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G,%?jisva~zA-;;
-8

0. A!-!Ysdiah-Yak-Oha~a~ah.

17. L^v'i~ic;iiurle of ine ioiiowings is not aiiowea to do in tne a/-Muanarabah

finansirn?
'2

I-A. ;ua/a:picjc~t.
E. Fitiiiiisyu~ii~iriieed.
CI
'U . capita; mi;& be c>o;-l~y
afiiy.
D. Losses wiii be borne by ine ban^.

18. In A/-liarah financing, bank is known as a

C. banker

?n
Y The hiiowings are amsng the appiicatior?of funds t~ an Islamic bank, except
A, e * \ t ; * f i e *,-An,
go"??ryQ c 4 ~ ~
lrrt
, ~ L !U
L. !

m
5. I
ai-j8rsi! financing.
C. al-murabahah financing.
D. a!-Dai-Sit,iiamai?-t!jiIfinancing.
IBB 50131 IBB 5103 OGOS 2006

20. A customer would Ilke to buy a car that cost him RMGO 000. The bank has
offered him a financing for the amount of RM50 000. What is the cost of
-
fi~ancincto the bank?
A. RM 55 000
!3. !?M 60 000
;' iji\li i i i iiiiii
h.. y!
n.! !1-1 1-i1-11-1

D. RM50000
IBB 50131 IBB 5103 OGOS 2006
SECTION B
Marks : 80

Answer ar?y FOUR questlens in the answer baoklst provided. Questim

ONE is cempu!sory.

Mr. Aii Aubar has just got married to Siti Norhaliza and they have gone to the
:-
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2 .- . . .
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m
r n v s b * i v t lvyr I
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I.. .=: :.-.
Ann ef i ~ i z mk2nk-s
i~ in B a n ~ a rBar; sang: tz. appiy f ~ sr
housing loarr. They iiiteiided to Siiy a brand new house at Sri Pijlera, i3angi
h i RM 350 000 which wouici be completed iii two yeai-s time. They have
further negotiated wlth the bank that they will only start paying the bank upon
cor;.!pletion of the h ~ u s e .b,dditionai Ifif~r!matiofi pe&ifiing to the home
-.-.
1C.. -._
- - ._.-
:
.
III ia11Cll~yai e;
-
.=.i-

Bank's profit rate is 6% per annum.

9 FInancl?g ammount
Is EM 300 000.
Financing period is 25 years,

3 credit offjig- - - are

sf the bank. trn!!
; -. .reciiirsri - - -
- --- .. to give &\!ice I
tc them 2nd
ailfir2ris pjnr j~ tip? prtyessics 3nt-j
take the i;etT-.esRgq- zppm\!m! nf
financing by r.~mpieiingihe ioiiowings:

a, -
Briefik.I J L ... s;;~- -
basic auestions that you need.
U I ,!e the three mast ~mpoEant

(3 ma,ks)

5.
j- . --.--.-.-.
P*j.p: $in?^.
..............

! z grace period amount.

e&!!ir.--+*-.r;*-*
11. O b i l i i i u V l
-- nu=.

iii. instaiimeni amount.

*

IBB 50131 IBB 5103 OGOS 2006

,iv. redemption amount (if the customer wants to redeem after has
paid for 23 years).
1 4 9 mnrLr\
;I L ::Iaxna;

.-..
P
!f !Jr A!i Akbar's sa!ary Is F?M 3 599 a month and hi= wifz only earns
RM t 200 a month, Is Re quaiifled for tine financing? Support your
answer based on the ca!ctl!atior! in (b).
,
a-
:= s
\-
- +.--:*-'#
z z <,-s;2 7 -7
1

The isiamicr: fiiianciai insiiii-iiiijiis in fviaiaysia have fioi.jrigiie[i arid gi.acj~-;iduaiiy

progressed over the years since the first isiamic bank has started business in
1983. There are now many foreign Islamic banks competing with the local
h-- .- I - -
i.lYCI
V U I II\Y.

a. Explain what are the sources of Shariah as weil as the principles which
have beep! applied as the!r gurbe!ine in runn!ng da!ly bank!ng
operations?
\! 4I G
v 8F rn, mu
D V,
~ mru,
C\

b. List fifiancial prcdiicts of an fstamic bank as a capital pietider.

(4 marks)

a. Define what is A/-Mudharabah financing and its tenets.

(4 ???arks)

-.
!? -..~ p l i z!four difference= b e + e e n A!-Mt&ba;sbsh
F 2nd ,q/-!,&s;/sr&&
financing.
(16 marks)

SULIT
IBB 50131 IBB 5103 OGOS 2006

Question 4

.
cz- ----. .-- in inintnii
T?nncrihn --.-.. fbe f ~ s t ~ r eofs 2 General i~es';men';,A,ctt2unt and
the Shariah principle used by Islamic banks in Malaysia.
8 marks)
(I

b. Assuming ?Ar. Mohammer?., customer of an !slamic bank having an

investment account with the bank for 3 years, After ivvo years, ne goes
to the United Kingdarn to work for 5 vears. Can he continue to ~ e e p
LC-.. ,,,-,:,I.
il ie ab~uul
,:,I+L
t r vvtri i
+I-,
re bank?
fi-:-fl..
-!
-
!e.!y ey.p!a!:!.
--I-?.-

j2

5. !U13bU34
-%;=-~-. .Ar ho,& Bank k:%ebO:
t --t--3 H e !-..- :-
iViiliGYSlQ
!"k3&"\
\di\:Vlj
---
LCfl l
--A:-' L- !-!-=-I-
iJb3ibl ii it;: ibiai [lib

+:.-
I rr la_1._iuar
-: - '.-
1 .
.
1.
.
rrloustr -
L..
. - ---.
y iu- ~ruurrsit
il
in iviaiaysia anci be pari of the mainstream
CI ~

in the future.
(15 marks)
 REPAYMENT FRSQUSNCP : A MONTHLY
---------------__-_-------------------------e=------------------------.---------
F I N FRD ANNUITY FACTOR FOR CRR RATE
- - - - - - - l _ - _ _ _ _ _ _ - i _ - ~ ~ - - - - - - - - - - ~ ~ - - - - - - _-___
*
( j 3.50% 4 2 . E.GGX P , A ~ . S U %f . A 7.00% P , A 7.50% p . ~
----------____I____------------d-----------=~---------------------~~-----------

i.00 8,49215920 8.50580451 8.60662705 8,52979811 8.652fi500~

1.50 5.71078010 5,72415855 5.82315686 5,84585699 5,868421312 5.s31Zg402
2.00 4 -32057254 4,33357349 4.43235555 4,45465902 &... ;- y. .? ,
?,
,
+,
,- ~ +.
' A ~ : ~ ~ ~ ~ ~ i
2 . 5 2- &"$'!":?.!
_ - _ - _ _ l a
;.;;;~4!1;6 3.$3788733 3.62052564 3.64313124 3,66594612
3.00 2,93021103 2.94349685 3,04229193 3.26492289 3.gE773129 j.ii060422
3.53
4,Q3
2.53322977
2.23550150
2.54654577
" -;an=---
&.Z*oyao tv
2 e 6 d- -<Yf Li 7gax ,- 4d n
8.34850099
0 efiQ*RPea
L , = V a j f - ~ a ~L
2,3715!,253
---
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s;=1y;3eQ
2 . $+:5:g25
2 , Tij4g360
- --
2 . ~ ;17.q7;:s4!2
4.50 z,fiC42c$" -
.5 "3‘--" -- 2-:175s353
- 2.i4583991 2.16415252 2.16761139
5 . 0 1.31917597 1,83263190 1.9332787? :.95~6285~ 2.~3376435
E r-
.->:uV 1.66786366 1.58137653 i.78262608 l3RQ615fj5S 1,E2984401 i.85372325
6:OO 1.54184055 1,55541594 1.$5?28786 is681""413 1.70489658 1.:29~0244
6.50 1.43527096 1.44893913 i.5514213? 1.57532773 1.5fS42fij7 ~ . ~ E ? . T ~ ? P z
7,012 1.343385c; 1s357sg7g7 :Les;2854s4 i m ~ z + 3 5 3 S 4 1.5QcJzSS52 1,53382~?8
i,43<
r.Le4rz85C l.27869656 1.33252663 i,4ij681965 1 . 4 3 1 3 4 3 3 0 l,:zG;Fc54
8.00 1.19580613 1.8C954;CE 1.25g63158 1+36*2388?2 1.3g83E~54
8 ,3.;j i. i3d$q$j52? 1. ? 1 $- l.3 6 s 1 $ ' #-iCc*"' "'^
I -&JJY~D 1,32882573 ~ 1L. 2 7 3 6 3 3 1 2 1,30358449
9.00 1.08074230 1.0947:367 i.ZQQ57$3~ :,LLdt2aza 1 - 2 ~ ~ 6 ~ ~ 5 g q ~ .,CIC.'AC.^ ' -

5.50
,n
LU. vv
<.-
nn
--
-1 . i > ~ ~ 3 $ ~
---
1 . 0~ 436 4 : > ; 5 3
V . 2&??$85322 1.00296953
1 . 1 5 8 ~ 4 $ 5 E i .n ~rov,u!/
* . > f i q ~ " f i *
? . u v Q - t ~ ~1.22911253 ~ r
1.11022443 1 , 1 3 54"v 2v u2 u2 ~ I I* ~D- I- - V3 ?4 ,~4 ~ 1. - nj rq~l.ri255 ~ ~ c - .
*

: - -

lG+tc !>.9$954080 0.95372138 i , g 9 , i i 2 T 4 7 1 , 1 2 2 9 3 8 2 9 1.14909754

i . 0.91383509 0.92888584 i,o367oz95 1,05233256 i.Ogg40793 ?.??S73589
11-50 0.88127033 0289559?88 i . 0 0 4 9 0 1 7 3 1,030'78Q18 1 . 0 5 7 0 1 9 4 4 l,Q836352$
12-85 0,85145432 0.86584668 5,37584582 1,00192647 1.02837917 1;0<~79915 ..-rYL.i

i2.50 0.82405696 0.83552039 0 , 2 4 5 2 1 5 5 1 0 . ~ 7 5 ~ 9 1 3 4 1 . ~ ~ 2 1 5 6 7 ~

13.90 Q.198739$3 0 , f t 1 ' 3 3 3 3 ~ + 5 ~ , 3 2 ; 7 2 2 ; ~ 0 . ~ 3 i i 9 5 1 7 O;Y750?235 1.00536663
id-so ~ . ' 7 7 5 4 4 2 8 ? S4:968489i 0.90213074 0 , 9 2 8 7 9 9 6 5 Q.95588786 1 ~ . 9 8 3 ~ ~ ~ ~ 6
14.00 0.?53?84?6 $,768452$G 5 . 5 8 1 2 3 5 5 5 ~ = 9 0 8 1 Q j ~0 .~8 3z 5~3 3 g 2 2 9,96313985
14.59 n,?Sz6183? 0 . 7 4 8 3 9 ' 7 5 3 0.86196156 8 . 8 8 8 3 2 2 1 8 0,91642946 0.94439178
15.00 0.71438304 0,72970309 0.84385646 $.8?:::157 0.89882679 0 , 9 2 7 0 0 9 1 5
15.50 5.63735450 0.71224597 0.82708715 g.g54536(j3 0 . 6 8 2 4 5 7 C ~ 6 @,9?08588fi
16-50 8.68094728 0 , 6 9 5 9 1 9 1 7 0.81143756 0 . 8 3 9 @ 7 9 1 6 0 . P e ? 2 G f i z c gagS5gz663
16.50 0.66555945 Q.g8$53369 ~ = ~ i $ .~ ~~ .~ ~ ~ 2 2 ~ C :. $2 ~5~2 5~7 ~~ 5 2 ~0.gzi8~393
',y*c; g z -2-zL<L$,-,:.ko-.
Y V V e B . tii5Sz$Gqij 0:78310044 0.81112473 0 . 8 3 9 f i 5 9 3 3 9 , e g-e ?,, ."-, cu.. .-.nu ~ -
17.50 0.63749187 Q,G535528S $ . F T $ z 4 3 f i j , ~ = ? 9 ~ . 5 5 7 z~, 5g 2 7 ~ 3 5 2 5 9 . 3 5 , j 4 5 2 6 2
-!R,eQ
- c,E?4$$l;j s , 6 3 9 g " 9 ~ 8 0.75816201 0.78556468 O.515509g: s,g;;syij7~
12-50 0.61254.792 9.527CGG5i 0:74679412 fie7:53S%2$j 0 . 5 ~ 4 5 1 5 2 6 6 , 8 3 4 1 9 1 6 3
19-30 0.60109183 0.61648199 0 . 7 3 6 0 8 2 7 4 0.76485913 n. 7
V ~J n* ~ L* Y
^ L* L
- -O- 0 . 8 2 4 0 7 6 4 6
19.50 0.59024458 0.60570571 0.7259768g G ; ? ~ A U ~ O Q C5 . 7 5 4 4 6 6 1 ~ 0 . 8 1 4 5 5 6 1 9 .-WV,U

m:w !?.5?S3G005 0.ii9549190 0.71643081 0.74557612 0.77529789 0.80559094

20.50 0,57019694 0.58579948 0.70740315 9 , 7 3 6 7 3 1 0 3 g a 4 6 f i 6 4 5 2 8 0 , 7 9 7 1 2 9 3 8
21-05 0.56091796 Q,57659091 0.72836572
0.72044621 n, 7 5 9 7 9 3 3 3 n 77 % :K . < ~ - I K J
21.5~3
Zz.00
~ ~ 5 5 2 9 8 9 2 4i 3 , ~ 5 7 g 3 2 6 8
0.54368009 2.55942372 ~ , $ ~ 3 ~0.712CJ4160 ~ ~ 2 2 g,?S342$iS 0.77450846
- ~ u U V J
Y

22.50 0.53566248 0.55154619 0.67577932 0.70582382 0.75649111 0,76776930

23.00 G.528Oi088 0 , 5 4 3 8 6 4 4 2 0.66884639 0.69906714 0 , ? 2 9 9 1 g 3 $ 0,5612g743
23.50 0.52070179 0.53572505 ~ ~ 5 5 2 2 5 3 6 7i?i659254g05 G - 7 2 3 6 8 1 4 , $ 5 . 7 5 3 3 3 3 2 5
24.9.2 n J I I L.5
~ !Y ~ - ~ 2 E S . ~ E 0,E6 5~5 9 7 7 g f j ~ ~ 5 8 6 5 4 1 9 5 - - - - - - 0 ; ?$96g313
-
U . Eifi-'"-- W -
" I A! '
,-q

24.50 0.50702719 0 . 5 2 3 1 3 9 4 1 ,,-,. ue3;J,-,J,-s,<ye.! ~ " 0.68073817 0 . 7 1 2 1 3 0 5 1 0,74415g38

25-00 0.50062383 oz516s5520 0 . 6 4 4 3 0 1 2 1 g , 6 ? 5 2 3 2 2 $ 0,73898956
-----------------.-----,a--------------------&---------------T--------------p------

+ * + * * * t * * * * t ~ ~ % ~ ; ~ * ' i ; i * . i t ~ y ~ ~ ~
~ ; ~g ~
+ +- T ~z ~
+ ~~ ~ ~~ +~ * ~K ~
~ ~. * ~ ~ ~~ *~ ~ +* ~ ~
- U-
REPAYMENT = ( A " ~ ? ~ T ~ ~ ~
E::;F ilo;;i.i~:;7
....UL~
:-
L L,
r r . r ~ l - O i 3 FINANCING
+*iix******+****************t*************************************+******
p A-m
* AMOUNT) / 100 *
-LEFXH M ~ I \ ~ ~ ~ ~Ann
A TfKN w
A N ~ G