Session 5 Quiz

1

What does a bank do with the money you deposit?

• Keeps all of it in a vault
• Lends some of it to others and charges interest
• Sends it to the government
• Invests it all in stocks

2

What is the difference between a checking and savings account?

• Checking is for everyday use; savings is for keeping money longer
• They are the same thing
• Checking earns more interest
• Savings accounts have debit cards

3

What is Riba?

• A type of savings account
• Interest — a guaranteed return on a loan, prohibited in Islam
• A charitable donation
• An Islamic banking product

4

What is murabaha?

• A type of interest
• Cost-plus financing where the bank buys an item and sells it to you at an agreed markup
• A savings account
• A credit card

5

What is a credit union?

• A government bank
• A member-owned, not-for-profit financial institution
• A credit card company
• A type of loan

6

How is Islamic banking different from conventional banking?

• It charges higher interest
• It uses profit-sharing and risk-sharing instead of interest
• It only serves Muslims
• There is no real difference

7

What is musharakah?

• A type of interest
• Partnership financing where bank and customer share profits and losses
• A savings plan
• A government program

8

Why might someone choose a credit union over a big bank?

• Credit unions are always bigger
• Lower fees, better rates, and member ownership
• Credit unions have more ATMs
• There is no reason to choose one