Public Provident Fund (PPF) Quiz

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Topic: Public Provident Fund (PPF) Quiz

Number of Questions: 15

1. In which year was the Public Provident Fund (PPF) Scheme introduced in India?
   A) 1958
   B) 1968
   C) 1990
   D) 2004
   
   View answer

     Option B
   Explanation: Public Provident Fund ( PPF ) was introduced in India in 1968 with the objective to mobilize small saving in the form of an investment, coupled with a return on it.
2. Which if the following is the latest amendment to the PPF scheme?
   A) Public Provident Fund Amendment Scheme, 2010
   B) Public Provident Fund Amendment Scheme, 2016
   C) Public Provident Fund Amendment Scheme, 2014
   D) Public Provident Fund Amendment Scheme, 2017
   
   View answer

     Option D
   Explanation: The latest amendment in PPF is the Public Provident Fund Amendment Scheme, 2017.
3. Under Public Provident Fund (PPF) Scheme an individual can open a joint account with ___ ?
   A) Spouse
   B) Parents
   C) Children
   D) Joint Account is not permissible in PPF
   
   View answer

   Option D
   Explanation: Joint account cannot be opened.
4. An individual can open how many PPF accounts in his/her name?
   A) One
   B) Two
   C) Five
   D) No such limit
   
   View answer

   Option A
   Explanation: Only one PPF account can be maintained by an Individual, except an account that is opened on behalf of a minor.
5. What is the maturity period of Public Provident Fund (PPF) Scheme?
   A) 5 years
   B) 10 years
   C) 15 years
   D) 7 yaers
   
   View answer

   Option C
   Explanation: 15 years. But the same can be extended within one year of maturity for further 5 years and so on.
6. An individual can open a PPF account with what amount?
   A) Rs 100
   B) Rs 500
   C) Rs 1,000
   D) Rs 5,000
   
   View answer

   Option A
   Explanation: An individual can open account with INR 100/–
7. What is the minimum yearly investment in Public Provident Fund (PPF) Scheme?
   A) Rs 100
   B) Rs 250
   C) Rs 500
   D) Rs 1,000
   
   View answer

   Option C
8. What is the maximum yearly investment in Public Provident Fund (PPF) Scheme?
   A) Rs 1 lakh
   B) Rs 15 lakh
   C) Rs 1.5 lakh
   D) No such limit
   
   View answer

   Option D
   Explanation:
9. What is the maximum number of deposits that can be made in an year in PPF Scheme?
   A) 1
   B) 12
   C) 6
   D) No such limit
   
   View answer

   Option B
   Explanation: Deposit into a PPF account has to be made at least once every year for 15 years but a maximum of 12 investment is allowed each year.
10. Partial withdrawal is allowed in Public Provident Fund (PPF) Scheme after completion of how many years?
    A) 3
    B) 5
    C) 6
    D) 7
    
    View answer

    Option C
    Explanation: One can close a PPF account only upon maturity i.e. after completion of 15 years. However the scheme permits partial withdrawals from year 7 i.e. on completing 6 years.
11. In which year the PPF account can be prematurely close?
    A) 6
    B) 7
    C) 10
    D) Cannot pe closed before maturity
    
    View answer

    Option D
    Explanation: Premature closure is not allowed before 15 years. Only Premature withdrawal is allowed from 7th year.
12. From which year loan facility is available under Public Provident Fund (PPF) Scheme?
    A) 3
    B) 5
    C) 6
    D) 7
    
    View answer

    Option A
    Explanation: Loan facility available from 3rd financial year. (Customers can avail of the loan facility between third financial year to sixth financial year ie. from third financial year upto end of fifth financial year.)
13. Public Provident Fund (PPF) Scheme is fully backed by?
    A) Reserve Bank of India
    B) Central Government
    C) Post Office
    D) State Bank of India
    
    View answer

    Option B
14. Identify the false statement with respect to PPF scheme:
    A) Account can be opened in name of Minor
    B) NRIs cannot open PPF account
    C) The maturity of PPF account can be extended in the blocks of 3 years
    D) Loan facility is available from 3rd financial year.
    
    View answer

    Option C
    Explanation: maturity can be extended within one year of maturity for further 5 years and so on.
15. What is the interest rate in Public Provident Fund (PPF) Scheme?- Check here

 

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