Westminster International University in Tashkent

Westminster International University in Tashkent

Refer/Defer In-Class Test Take home Exam

SEMESTER TWO

MODULE CODE: 5FNCE004C

MODULE TITLE: ISLAMIC FINANCE

DATE: June 29, 2021

TIME: 12:00 – 3:00 pm

VENUE: WIUT Intranet

INSTRUCTIONS TO CANDIDATES: 10 Questions. Answer all questions. The total allocated mark is 100. Answer all questions in this file after questions under ANSWERS section. Rename the file with your student ID (E.g. 0000xxxx) number before submitting it to the system. Provide your ID number inside the file as well. It can be set as header. Any submission without proper ID number will not be marked.

TIME ALLOWED: 3 hours

Answer all questions. Total mark is 100 marks
Question 1 (10 marks)
Describe the major economic problem that the first Caliph, Abu Bakr encountered and how did he deal with such a problem.

Question 2 (10 marks)
What are the essential elements of a valid contract in Islamic law?

Question 3 (10 marks)
How does wakalah complement the structuring of a mudarabah financial instrument used by an Islamic bank?

Question 4 (10 marks)
Differentiate between the major features of sukuk and conventional bonds.

Question 5 (10 marks)
Why should a faith-based banking and finance be introduced into the modern global economy?

Question 6 (10 marks)
Discuss three major prohibited elements in commercial transactions under the Sharī‘ah.

Question 7 (10 marks)
Write a short note on how Islamic banks source funds and use them in Sharī‘ah compliant business.


Question 8 (10 marks)
Discuss three main types of accounts in the modern practice of Islamic banking.


Question 9 (10 marks)
A company has a large expanse of land near the light rail train (LRT) station it owns. The company is faced with liquidity management problems and requires enough liquidity to expand its business. It therefore approaches you as an Islamic finance expert to get advice on the best method of getting liquidity through sukuk.
What is the most appropriate sukuk structure you can suggest to the company to solve its liquidity problem, bearing in mind that the land near the LRT station can be converted to a car park? In addition, make a sketch of your proposed sukuk structure.


Question 10 (10 marks)
How can credit ratings of Islamic bonds limit risk-taking in the Islamic capital market?

ANSWERS: