Neco 2018 Islamic Religious Studies Question 29

Practice objective / multiple choice question 29 from the 2018 Neco Islamic Religious Studies examination.

Neco 2018 Islamic Religious Studies Objective / Multiple Choice Medium Difficulty
Question 29 NECO • 2018 • ISLAMIC_RELIGIOUS_STUDIES • objective

Zayd lends 10,000 Naira to his brother Hassan with the agreement that Hassan will repay 12,000 Naira after one year. Is this transaction permissible under Islamic commercial law? If not, name an alternative contract that would be permissible for Zayd to earn a profit.

Answer Options

Correct Answer A. No; it is prohibited as riba. Zayd could use a Murabaha contract to earn a profit
B. No; it is prohibited as riba. Zayd could use a Salam contract to earn a profit
C. Yes; it is permissible as a simple loan. Zayd could use a Qard al-Hasan contract to earn a profit
D. No; it is prohibited as gharar. Zayd could use an Ijarah contract to earn a profit
Correct Answer
A
Correct Option:
No; it is prohibited as riba. Zayd could use a Murabaha contract to earn a profit

About This Question

This is Neco 2018 Islamic Religious Studies Question 29. It is one of the objective questions from the 2018 Neco Islamic Religious Studies examination.

Difficulty level: Medium .

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