11.NSC interest is:
A. Paid monthly
B. Paid quarterly
C. Compounded annually and paid at maturity
D. Credited yearly to savings account
[show_answer]The correct answer is: C [/show_answer]
12.Interest earned on NSC is:
A. Tax-free
B. Exempt under Section 10
C. Taxable
D. Notional
[show_answer]The correct answer is: C [/show_answer]
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
[show_answer]The correct answer is: B [/show_answer]
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
[show_answer]The correct answer is: B [/show_answer]
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
[show_answer]The correct answer is: C [/show_answer]
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
[show_answer]The correct answer is: C [/show_answer]
17.NSC premature closure after 3 years gives:
A. NSC interest on principal
B. POSA rate
C. Only principal
D. No interest
[show_answer]The correct answer is: A [/show_answer]
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
[show_answer]The correct answer is: D [/show_answer]
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
[show_answer]The correct answer is: C [/show_answer]
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
[show_answer]The correct answer is: C [/show_answer]
