Banking Awareness Quiz – Set 6 – National Savings Certificate (NSC)

National Savings Certificate (NSC) Quiz

Banking Awareness forms an important part of Bank exams. Study our Banking Awareness topics to excel in Bank exams. National Savings Certificate (NSC) Quiz

Topic: National Savings Certificate (NSC)

Number of Questions: 10

  1. National Savings Certificate is issued by?
    A) Reserve Bank of India

    B) Post Offices
    C) Nationalised Banks
    D) Both B and C
    View answer
      Option B
    Explanation:
    Post Offices
  2. Who cannot invest in National Savings Certificate (NSC) Scheme?
    A) HUFs

    B) NRIs
    C) Trust
    D) All of the above
    View answer
      Option D
    Explanation: Any residential individual can purchase NSC. Trusts, NRIs and HUFs cannot buy NSC.
  3. Which of the following is not a valid denotation of National Savings Certificate (NSC)?
    A) Rs 500

    B) Rs 1,000
    C) Rs 5,000
    D) Rs 50,000
    View answer
    Option D
    Explanation: The certificate will be available in the denominations of Rs. 100/, Rs. 500/-, Rs. 1000/-, Rs. 5000/- and Rs. 10,000/-. Any number of certificates for the denominations specified above may be purchased.
  4. What is the minimum investment required in National Savings Certificate (NSC) Scheme?
    A) Rs 100

    B) Rs 250
    C) Rs 500
    D) Rs 1000
    View answer
    Option A
    Explanation: Minimum Investment: Rs 100/- (and multiples of Rs 100)
  5. What is the maximum investment limit in National Savings Certificate (NSC) Scheme?
    A) Rs 50,000

    B) Rs 1.5 lakhs
    C) Rs 5 lakhs
    D) No Such Limit
    View answer
    Option D
    Explanation: Maximum Investment: No Limit (But Tax benefit is applicable till Rs 1.5 Lakhs)
  6. Tax benefit applicable under National Savings Certificate (NSC) scheme for investment upto?
    A) Rs 50,000

    B) Rs 1 lakh
    C) Rs 1.5 lakh
    D) Full value is tax free
    View answer
    Option C
    Explanation: Deposits qualify for tax rebate under Sec. 80C of IT Act.
  7. What is the maturity period of National Savings Certificate (NSC) scheme?
    A) 7 years

    B) 5 years
    C) 10 years
    D) 9 years
    View answer
    Option B
    Explanation: 5 years. (Also know as VIII series – Earlier NSC with maturity of 10 years were also available but were discontinued later.)
  8. The National Savings Certificate (NSC) scheme with maturity of 5 years is also known as?
    A) Series IX

    B) Series VIII
    C) Series V
    D) Series VII
    View answer
    Option B
  9. Premature withdrawal is allowed in National Savings Certificate (NSC) scheme after how many years?
    A) 1 year

    B) 2 years
    C) 2.5 years
    D) None of the above
    View answer
    Option D
    Explanation: Not allowed expect in special cases.
  10. Identify the false statement with respect to the National Savings Certificate (NSC) scheme.
    A) Banks and NBFCs accept NSC as a collateral or security for secured loans.

    B) Premature Withdrawal is not allowed in NSC under any circumstances
    C) A minor can purchase the certificate direct in his name
    D) Any number of certificates for the valid denominations may be purchased.
    View answer
    Option B
  11. What is the Interest Rate for National Savings Certificate (NSC) scheme? – Check Here

 

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