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2026 Statistics

Key Facts: IFQ Exam

100

Exam Questions

CISI Specification

2 hours

Time Limit

Pearson VUE

70%

Passing Score

CISI

130 hrs

Avg Study Time

CISI Recommendation

£370

Standard Exam Fee

CISI Website

Level 3

Certificate Level

UK RQF

The CISI Islamic Finance Qualification (IFQ) is a benchmark international certification covering Sharia-compliant finance. The computer-based exam consists of 100 MCQs with a 2-hour time limit and requires a 70% score to pass. It covers general Sharia principles, exchange contracts, Sukuk markets, Takaful, and corporate governance.

Sample IFQ Practice Questions

Try these sample questions to test your IFQ exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is considered the primary, absolute, and unalterable source of Shariah from which all Islamic finance principles are derived?
A.The Quran
B.The Sunnah
C.Ijma (consensus)
D.Qiyas (analogy)
Explanation: The Quran is the direct word of Allah and the ultimate primary source of Shariah. The Sunnah is the second primary source, while Ijma and Qiyas are secondary sources.
2Which secondary source of Shariah involves the consensus of jurists and scholars on a legal issue not explicitly covered in the Quran or Sunnah?
A.Qiyas
B.Ijtihad
C.Ijma
D.Urf
Explanation: Ijma represents the unanimous consensus of Islamic scholars/jurists on a specific ruling. Qiyas is analogical reasoning, Ijtihad is independent reasoning, and Urf is local custom.
3Which of the following lists the four major Sunni schools of Islamic jurisprudence (Fiqh) whose interpretations form the basis of Shariah rulings?
A.Hanafi, Maliki, Shafi'i, Hanbali
B.Ja'fari, Hanafi, Maliki, Hanbali
C.Shafi'i, Hanbali, Zahiri, Hanafi
D.Maliki, Shafi'i, Ibadi, Hanbali
Explanation: The four canonical Sunni schools of law are the Hanafi, Maliki, Shafi'i, and Hanbali schools. The Ja'fari school is Shia, while Ibadi and Zahiri are separate schools.
4What is the primary role of international bodies like the International Islamic Fiqh Academy in modern Islamic finance?
A.To act as a central bank for Islamic financial institutions
B.To issue collective Fatwas (scholarly rulings) on contemporary financial transactions
C.To regulate conventional stock exchanges in Islamic countries
D.To audit the financial statements of Islamic commercial banks
Explanation: The International Islamic Fiqh Academy issues resolutions and collective Fatwas that help standardize Islamic finance practices globally by resolving contemporary Shariah issues. It has no regulatory, central banking, or auditing powers.
5What is the Shariah term for the interest charged on a loan due to deferment or delay in repayment?
A.Riba al-Fadl
B.Riba al-Nasi'ah
C.Gharar al-Yasir
D.Maysir
Explanation: Riba al-Nasi'ah refers to the usury of delay, which is the interest charged on loans or deferred payments. Riba al-Fadl is the usury of excess in barter exchange.
6According to the Hadith on six ribawi commodities, when exchanging dates for dates, what two conditions must be met to avoid Riba al-Fadl?
A.Equal weight/quantity and spot delivery
B.Different weight/quantity and deferred delivery
C.Equal weight/quantity and deferred delivery
D.Different weight/quantity and spot delivery
Explanation: When exchanging homogeneous ribawi goods (same category), the transaction must be hand-to-hand (spot) and in equal weight/quantity to avoid Riba al-Fadl. Any unequal quantity or delay constitutes Riba.
7Which of the following best defines the Shariah prohibition of Gharar?
A.The prohibition of interest on debt
B.The prohibition of excessive uncertainty or ambiguity in a contract
C.The prohibition of investing in unethical businesses
D.The prohibition of charging markup on sales
Explanation: Gharar refers to excessive uncertainty or ambiguity regarding the subject matter, price, or delivery of a contract, which is strictly prohibited in Islamic finance.
8How does Islamic jurisprudence treat minor uncertainty (Gharar al-Yasir) compared to excessive uncertainty (Gharar al-Fahish) in financial contracts?
A.Both types of uncertainty invalidate the contract
B.Gharar al-Yasir is tolerated and does not invalidate the contract, while Gharar al-Fahish is prohibited
C.Gharar al-Yasir is prohibited, while Gharar al-Fahish is tolerated
D.Both types of uncertainty are fully permitted
Explanation: Minor uncertainty (Gharar al-Yasir) is unavoidable in business and is tolerated. Excessive uncertainty (Gharar al-Fahish), such as selling non-existent goods, invalidates contracts.
9What is the standard annual rate of Zakat (obligatory alms) that a Muslim must pay on wealth exceeding the Nisab threshold for a lunar year?
A.1.0%
B.2.5%
C.5.0%
D.10.0%
Explanation: Zakat is calculated at 2.5% on qualifying liquid wealth that has been held for one full lunar year and exceeds the Nisab threshold.
10In the context of Zakat, what is the 'Nisab'?
A.The maximum amount of charity a Muslim is allowed to give voluntarily
B.The minimum threshold of wealth that makes Zakat obligatory on a Muslim
C.The tax rate applied to corporate profits
D.The administrative fee charged by Zakat collectors
Explanation: Nisab is the minimum threshold of wealth (traditionally valued in gold or silver equivalents) that a Muslim must possess for a year before Zakat becomes obligatory.

About the IFQ Exam

Global Level 3 qualification covering the Sharia principles, contracts, and practices underlying Islamic banking, insurance (Takaful), and investment.

Questions

100 scored questions

Time Limit

2 hours

Passing Score

70%

Exam Fee

£370 (Chartered Institute for Securities & Investment (CISI))

IFQ Exam Content Outline

10%

The Basis of Islamic Banking and Finance

Sharia principles, sources of law, ethical wealth distribution, and prohibitions

10%

An Introduction to Islamic Banking and Finance

Industry history, operational structures, challenges, and oversight bodies

10%

Islamic Principles of Transactions

Commercial contract rules, possession requirements, and exchange maxims

15%

Basic Contracts and Their Treatment

Sarf, Wadiah, Rahn, Kafalah, Qard, and standard accounting principles

20%

Financial Contracts and Techniques

Detailed structures of Wakala, Mudarabah, Musharakah, Murabahah, Ijarah, Salam, and Istisna'a

10%

Islamic Asset Management and SRI

Shariah compliance screening, dividend purification, and ethical investing

10%

Sukuk Market

Structures, asset-based vs asset-backed mechanics, and secondary trading

10%

Islamic Insurance - Takaful

Mutual assistance principles, operational models, and surplus distribution

5%

Islamic Corporate Governance

Shariah board oversight, AAOIFI standards, and investor protection

How to Pass the IFQ Exam

What You Need to Know

  • Passing score: 70%
  • Exam length: 100 questions
  • Time limit: 2 hours
  • Exam fee: £370

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

IFQ Study Tips from Top Performers

1Dedicate at least 130 hours of total study time, focusing closely on the learning objectives (Know, Understand, Apply).
2Pay attention to the distinctions between different contracts: note which ones require upfront payment (like Salam) versus those with flexible payments (like Istisna'a).
3Memorize the rules of ribawi exchange, particularly the two conditions (equal quantity and spot delivery) required when trading identical commodities.
4Understand the roles of international standard-setters: AAOIFI for accounting/governance/Shariah and IFSB for prudential regulation.
5Attempt multiple full-length practice tests to manage your time effectively for the 100-question paper.

Frequently Asked Questions

What is the passing score for the CISI IFQ exam?

The passing score is 70% (70 correct answers out of 100 multiple-choice questions). Candidates who achieve a score of 91% or higher receive a 'Pass with Merit' designation.

How long is the CISI IFQ exam?

Candidates are given 2 hours (120 minutes) to complete the 100 multiple-choice questions on the computer-based exam.

Do I need prior finance experience to take the IFQ?

No, there are no formal prerequisites or sponsorship requirements to register for the CISI IFQ. However, because it is a Level 3 technical certificate, dedicating approximately 130 study hours is highly recommended.

What are the main contract types tested on the exam?

The exam heavily tests commercial contracts, particularly Murabahah (cost-plus sale), Mudarabah (trust partnership), Musharakah (joint venture), Ijarah (leasing), Salam (forward sale), Istisna'a (manufacturing), and Wakala (agency).

Where can I take the CISI IFQ exam?

The exam is administered worldwide as a computer-based test at Pearson VUE testing centers. Remote online proctoring is also available depending on candidate location.