MCQs on Islamic Economic System – Zakat, Interest (Riba), and Trade

1. What is the primary objective of Zakat in the Islamic economic system?
(A) Increase government revenue
(B) Support business owners
(C) Purify wealth and help the needy
(D) Encourage hoarding of wealth

2. Which of the following is strictly prohibited in Islam?
(A) Trade
(B) Saving money
(C) Paying Zakat
(D) Riba (interest)

3. What percentage of annual savings is generally given as Zakat in Islam?
(A) 1%
(B) 2.5%
(C) 5%
(D) 10%

4. In Islam, trade is:
(A) Discouraged
(B) Forbidden
(C) Permissible and encouraged with honesty
(D) Allowed only for the poor

5. What is the major difference between Riba and profit in trade?
(A) Riba is fixed and guaranteed, profit involves risk
(B) Profit is haram, Riba is halal
(C) Riba is allowed if the lender agrees
(D) Riba supports economic equality

6. Which Quranic verse declares war against those who deal in Riba?
(A) Surah Al-Baqarah, Ayah 275
(B) Surah Al-Baqarah, Ayah 279
(C) Surah Al-Ma’idah, Ayah 3
(D) Surah At-Tawbah, Ayah 60

7. Zakat is obligatory upon:
(A) All Muslims, regardless of wealth
(B) Only businessmen
(C) Adult Muslims whose wealth exceeds the Nisab
(D) Only government employees

8. What does the term “Riba” literally mean?
(A) Charity
(B) Increase or excess
(C) Decrease
(D) Honesty

9. Trade in Islam is permissible if it:
(A) Involves interest
(B) Contains deception
(C) Is free from fraud and usury
(D) Has no written contract

10. One of the eight categories eligible for Zakat is:
(A) The rich
(B) Business owners
(C) The poor and needy
(D) Tax collectors