[color=blue][i][b]Would the correct answer be the closest multiple choice value numerically or the closest value under the maximum limit?[/b][/i][/color]

It is going to depend on the wording of the question.

Should the question specifically ask for the (option) answer closest to the correct answer, then you should take that to be a direction by the examiner to nominate whichever option answer is numerically closest to the correct answer.

Should the question not specifically ask for "closest" then you should take that to require your answer to be operationally correct, ie remain on the conservative side of the correct answer. The correct side is determined by consideration of where you need to be to remain within the relevant limit.

Bob may offer some further comment for clarification.

[color=blue][i][b]Sorry English is not my first language so I am really struggling with the wording and ambiguity of the question.[/b][/i][/color]

I really wouldn't worry about your English - it appears to be quite excellent.

John's take is exactly what I tell classes. If the question says 'is closest to', then that's what it means. Pick the numerically nearest answer. If the questions says 'maximum or minimum permitted value' then pick the nearest value that does not exceed that limitation.

CASA is increasingly presenting 'type-in' answers where you enter the result of your calculations.

Thank you very much Bob and John.

Apologies for the late reply.

It does clear things up. Where I am still a bit confused is if a question asks both maximum allowed AND closest to in the same sentence. Which rule would you apply?

An example question could be:
The maximum weight allowed to stay in balance is closest to?

So would this mean I would need to choose the closest value within the limit?

Sorry I may be overthinking this.

[color=blue][i][b]... if a question asks both maximum allowed AND closest to in the same sentence. Which rule would you apply? An example question could be: The maximum weight allowed to stay in balance is closest to? So would this mean I would need to choose the closest value within the limit?[/b][/i][/color]

I will be interested to see if Bob concurs - my take is that the question, as stated, is seeking the mathematically closest answer, even if that goes slightly outside the limit. Really, this sort of syntax and grammatical hair splitting is a bit silly - I would far rather see all the questions looking for the conservative side of the limit answers. Otherwise we get into the area of negative training which is not a very good approach to learning. Your answer is the more important and what you need to observe in your practical flying activities.

[color=blue][i][b]Sorry I may be overthinking this.[/b][/i][/color]

That's fine, thinking pilots tend to live longer than those who don't think.