1.What is the primary objective of the National Pension Scheme (NPS)?
a. Providing health insurance
b. Offering life insurance coverage
c. Promoting retirement savings and providing regular income after retirement
d. Supporting education for children
Answer: c. Promoting retirement savings and providing regular income after retirement
2.Under NPS, what are the two types of accounts that an individual can open?
a. Savings Account and Current Account
b. Tier-I Account and Tier-II Account
c. Fixed Deposit Account and Recurring Deposit Account
d. Salary Account and Pension Account
Answer: b. Tier-I Account and Tier-II Account
3.What is the minimum age for opening a Tier-I NPS account?
a. 16 years
b. 18 years
c. 21 years
d. 25 years
Answer: b. 18 years
4.What is the maximum age for joining the National Pension Scheme?
a. 55 years
b. 60 years
c. 65 years
d. 70 years
Answer: a. 65 years
5.What is the minimum contribution frequency for Tier-I NPS accounts to remain active?
a. Monthly
b. Quarterly
c. Semi-annually
d. Annually
Answer: a. Monthly
6.Under NPS, who manages the funds contributed by subscribers?
a. Reserve Bank of India (RBI)
b. Pension Fund Regulatory and Development Authority (PFRDA)
c. Securities and Exchange Board of India (SEBI)
d. Life Insurance Corporation of India (LIC)
Answer: b. Pension Fund Regulatory and Development Authority (PFRDA)
7.What is the minimum annual contribution required for Tier-I NPS accounts to remain active?
a. Rs. 1,000
b. Rs. 5,000
c. Rs. 10,000
d. Rs. 50,000
Answer: a. Rs. 1,000
8.Under NPS, what is the maximum age for exit from the system at the time of normal superannuation?
a. 55 years
b. 60 years
c. 65 years
d. 70 years
Answer: b. 60 years
9.What is the regulatory body that oversees and regulates the National Pension Scheme in India?
a. Insurance Regulatory and Development Authority (IRDA)
b. Securities and Exchange Board of India (SEBI)
c. Pension Fund Regulatory and Development Authority (PFRDA)
d. Reserve Bank of India (RBI)
Answer: c. Pension Fund Regulatory and Development Authority (PFRDA)
10.Under NPS, what is the minimum percentage of the corpus that must be used to purchase an annuity at the time of exit?
a. 40%
b. 50%
c. 60%
d. 70%
Answer: a. 40%
11.Which of the following is true about the NPS Tier-II account?
a. It is mandatory for all NPS subscribers
b. It has a lock-in period
c. It provides a regular pension after retirement
d. It does not have any withdrawal restrictions
Answer: d. It does not have any withdrawal restrictions
12.What is the role of Pension Fund Managers (PFMs) in NPS?
a. Managing government pensions
b. Handling financial transactions for subscribers
c. Investing and managing funds on behalf of subscribers
d. Administering medical benefits
Answer: c. Investing and managing funds on behalf of subscribers
13.What is the benefit of the “Auto Choice” option in NPS?
a. Subscribers can choose their own pension amount
b. It automatically adjusts the asset allocation based on the subscriber’s age
c. It provides a lump sum amount at the time of retirement
d. It allows subscribers to switch between Pension Fund Managers
Answer: b. It automatically adjusts the asset allocation based on the subscriber’s age
14.How is the return on investment in NPS determined?
a. Fixed interest rate declared by the government
b. Market-driven returns based on the performance of the pension fund
c. Subscriber’s choice of return at the time of enrollment
d. Fixed annual dividends
Answer: b. Market-driven returns based on the performance of the pension fund
15.What is the tax treatment of NPS contributions under Section 80CCD(1B) of the Income Tax Act?
a. Exempted from tax
b. Tax deduction up to Rs. 1,50,000
c. Tax deduction up to Rs. 50,000 in addition to the limit under Section 80C
d. Taxable at a flat rate
Answer: c. Tax deduction up to Rs. 50,000 in addition to the limit under Section 80C
16.What is the maximum age for entry into the Atal Pension Yojana (APY) under NPS?
a. 45 years
b. 50 years
c. 55 years
d. 60 years
Answer: c. 55 years
17.Under NPS, what is the term used for the date on which the subscriber can exit and avail the benefits?
a. Superannuation Date
b. Vesting Date
c. Maturity Date
d. Exit Point
Answer: b. Vesting Date
18.What is the minimum contribution frequency for Tier-II NPS accounts?
a. Monthly
b. Quarterly
c. Semi-annually
d. Annually
Answer: a. Monthly
19.Under the All Citizens Model of NPS, who can become a subscriber?
a. Only government employees
b. Only individuals between 18 to 60 years
c. All citizens, including non-residents
d. Only individuals with high income
Answer: c. All citizens, including non-residents
20.What is the role of the Central Recordkeeping Agency (CRA) in NPS?
a. Managing individual subscriber accounts
b. Investing funds on behalf of subscribers
c. Conducting financial audits of pension funds
d. Administering medical benefits
Answer: a. Managing individual subscriber accounts