Advance (14 MCQ with Answer)

Advances

Q1. Of the following recommendations of the 7th Pay Commission, which of the following

statement about grant of advances is CORRECT?

a) Amount of Personal Computer Advance is Rs 50,000/-

b) Amount of Bicycle Advance is Rs 7,000/-

c) Amount of Motor Car Advance is Rs 4, 50,000/-

d) Amount of Motor cycle/Scooter Advance is Rs 75,000/-

Ans: a) Amount of Personal Computer Advance is Rs 50,000/-

Q2. As per the 7th Pay Commission, for the grant of House Building Advance, cost of the house

to be built/purchased (excluding the cost of the plot) should not exceed _____ times of the basic

pay of the employee subject to a maximum of one crore only.

a) 137

b) 138

c) 139

d) 140

Ans: c) 139 (secr 243/17, rbe 183/17)

Q3. The rate of interest for House Building Advance for railway employees for the period from

01-102019 to 30-09-2020 isa)

8.5%

b) 7.9%

c) 11.5%

d) 9.0%

Ans: b) 7.9% (secr 26/20)

Q4. The maximum amount of House Building Advance for construction/purchase of new

house/flat is

a) Rs 35/- lakh

b) Rs 25/- lakh

c) Rs 30/- lakh

d) Rs 10/- lakh

Ans: b) Rs 25/- lakh

Q5. The maximum amount of House Building Advance for expansion of existing house is

a) Rs 35/- lakh

b) Rs 25/- lakh

c) Rs 30/- lakh

d) Rs 10/- lakh

Ans: d) Rs 10/- lakh

Q6. The principal of House Building Advance shall be recovered in not more than ___ equated

monthly instalments(EMIs)

a) 240

b) 180

c) 60

d) 200

Ans: b)180

Q7. The interest on House Building Advance shall be recovered in not more than ___ equated

monthly instalments(EMIs)

a) 240

b) 180

c) 60

d) 200

Ans: c) 60

Q8. House Building Advance may be sanctioned to Deputy Chief Commercial Manager bya)

GM

b) PCPO

c) PFA

d) PCSC

Ans: b) PCPO

Q9. House Building Advance may be sanctioned to Assistant Financial Adviser bya)

GM

b) PCPO

c) PFA

d) PCSC

Ans: c) PFA

Q10. House Building Advance may be sanctioned to Deputy Chief Security Commissioner by 

a)GM

b) PCPO

c) PFA

d) PCSC

Ans: d) PCSC

Q11. House Building Advance may be sanctioned to a Ch OS working in Sr DOM Office bya)

ADRM

b) PCPO

c) PFA

d) PCSC

Ans: a) ADRM

Q12. What maximum amount of advance can be sanctioned from Provident Fund for treatment

purpose?

a) Equal to 3 months basic pay

b) Equal to 6 months basic pay

c) Up to 90% of the amount in the PF account

d) Up to 75% of the amount in the PF account

Ans: c) Up to 90% of the amount in the PF account

Q12. What maximum amount of advance can be sanctioned from Provident Fund for marriage of

self/ son/daughter/dependent relatives?

a) Equal to 12 months basic pay

b) 3/4th of the amount in credit

c) Equal to 12 months basic pay or 3/4th of the amount in credit whichever is less

d) 100% of the amount in credit

Ans: c) Equal to 12 months basic pay or 3/4th of the amount in credit whichever is less

Q13. What maximum amount of advance can be sanctioned from Provident Fund in the last two

years of retirement on superannuation without assigning any reason?

a) 80% of the amount in credit

b) 90% of the amount in credit

c) 75% of the amount in credit

d) 50% of the amount in credit

Ans: b) 90% of the amount in credit

Q14. What maximum amount of advance can be sanctioned from Provident Fund for purchase of

ready built house/flat?

a) Amount actually subscribed plus interest thereon

b) The actual cost of the house/flat

c) Amount actually subscribed plus interest thereon OR the actual cost of the house/flat

whichever is less

d) 24 months basic pay

Ans: c) Amount actually subscribed plus interest thereon OR the actual cost of the house/flat

whichever is less (secr 81/17, rbe 47/17)