11.NSC interest is:
A. Paid monthly
B. Paid quarterly
C. Compounded annually and paid at maturity
D. Credited yearly to savings account
12.Interest earned on NSC is:
A. Tax-free
B. Exempt under Section 10
C. Taxable
D. Notional
13.Who can open a Joint A Type NSC account?
A. Up to 2 adults, payable to either
B. Up to 3 adults, payable to all jointly
C. Minor and one adult
D. Only husband and wife
14.In Joint B Type NSC account, maturity proceeds are payable to:
A. All holders together
B. Either of the surviving holders
C. Government nominee
D. Post Office Savings Bank
15.NSC can be closed before 1 year under permitted conditions. What is payable?
A. Principal and interest
B. No payment
C. Principal only
D. POSA interest
16.If NSC is closed after 1 year but before 3 years, what interest is paid?
A. NSC rate
B. No interest
C. POSA interest
D. RBI bond rate
17.NSC premature closure after 3 years gives:
A. NSC interest on principal
B. POSA rate
C. Only principal
D. No interest
18.Which of the following is a valid reason for premature closure of NSC?
A. Death of Account Holders
B. Forfeiture by Gazetted Officer(If pledged)
C. By court order
D. All of the above
19.NSC accounts can be transferred to nominee/legal heir:
A. Only after maturity
B. In case of account forfeiture
C. On death of holder
D. Only on interest claim
20.If NSC is pledged and forfeited, it can be closed:
A. After 6 months only
B. Only with consent of all account holders
C. By Gazetted Officer’s order
D. On depositor’s request
