NEWFIN Technical Clinic

Interest-Free Finance in Ethiopia: Shaping the Next Generation of Inclusive Finance

Pre and Post Session Questions

Objective

Increase engagement
Reinforce learning retention
Give participants a sense of progress and self-assessment

Structure of the Questions

Area	No. of Questions
Foundations & Principles	3
Contracts	3
Application / Use Cases	2
Strategy & Ethiopia Context	2

PRE-SESSION (10 QUESTIONS – DIAGNOSTIC)

Objective: Identify baseline understanding + misconceptions

Q1 What is the core principle of Islamic finance?

A. Profit maximization
B. Interest-based lending
C. Ethical and asset-based transactions
D. Government control

Q2 Which of the following is prohibited?

A. Trade
B. Partnership
C. Interest (Riba)
D. Profit

Q3 All financial transactions are:

A. Prohibited unless approved
B. Permissible unless explicitly prohibited
C. Only allowed for banks
D. Restricted to specific sectors

The a most

Q4 Murabaha is:

A. A loan
B. A lease
C. A cost-plus sale
D. A partnership

Q5 Which contract involves shared profit and loss?

A. Murabaha
B. Ijarah
C. Musharakah
D. Wakalah

Q6 Mudarabah involves:

A. Two capital providers
B. Capital and management partnership
C. Leasing
D. Debt transfer

Q7 Which contract is best for agriculture financing?

A. Ijarah
B. Salam
C. Wakalah
D. Kafalah

Q8 Which contract is used for manufacturing or construction?

A. Murabaha
B. Istisna’
C. Qard
D. Hawalah

Q9 Islamic finance is best described as:

A. A niche religious system
B. A universal ethical financial system
C. A charity model
D. A government program

Q10 The biggest opportunity for Interest-Free Finance in Ethiopia is:

A. Limiting services to specific groups
B. Replacing conventional banks
C. Expanding financial inclusion and economic activity
D. Avoiding regulation

POST-SESSION (10 QUESTIONS – Self Evaluation)

Objective: Self evaluate deeper understanding and retention of knowledge gained

Q1 What distinguishes Islamic finance structurally?

A. Lower pricing
B. Absence of risk
C. Link to real economic activity
D. Government subsidies

Q2 Why is Riba prohibited?

A. It reduces profits
B. . It disconnects finance from real economic activity
C. It increases competition
D. It limits access

Q3 Which best reflects Islamic finance philosophy?

A. Risk elimination
B. Risk transfer
C. Risk sharing
D. Risk avoidance

Q4 Murabaha differs from a loan because:

A. It charges less
B. It involves asset ownership and sale
C. It avoids contracts
D. It is faster

Q5 Which contract best reflects partnership-based financing?

A. Ijarah
B. Wakalah
C. Musharakah
D. Murabaha

Q6 What is the key role of Wakalah?

A. Profit sharing
B. Ownership transfer
C. Delegation and execution
D. Lending

Q7 If financing a farmer before harvest, which is most suitable?

A. Murabaha
B. Salam
C. Ijarah
D. Kafalah

Q8 For infrastructure development, which contract is most appropriate?

A. Qard
B. Istisna’
C. Wakalah
D. Wadi’ah

Q9 What limits wider adoption of partnership models?

A. Lack of demand
B. Higher risk and governance requirements
C. Regulatory prohibition
D. Lack of awareness

Q10 The future of Interest-Free Finance in Ethiopia depends on:

A. Replicating conventional models
B. Limiting innovation
C. Linking finance to real economic sectors and ecosystems
D. Avoiding partnerships

NEWFinNetwork of Ethiopian Women in Finance

NEWFIN Technical Clinic
April 9, 2026

Powered by

NEWFin's Newsletter

NEWFinNetwork of Ethiopian Women in Finance

NEWFIN Technical Clinic April 9, 2026

Powered by

NEWFin's Newsletter

NEWFIN Technical Clinic
April 9, 2026