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What you noticed is the switch has been misused to activate an ANL (Automatic Noise Limiter). What that very cheap ANL does, is clip all sound coming out of the speaker, to one preset level determined by the limiting diode. The end result is the interference is not louder than the normal volume, it's perfectly equal to it. You'll notice when you turn on the lying NB switch, it changes the sound of everything coming through the speaker, due to the distortion the diode creates clipping off all of the peaks.


The true test to determine this radio has no noise blanker function ability whatsoever, is the fact that no matter what type of interference you are receiving, the NB switch will NEVER have any ability to reduce the noise floor, on the signal meter. Any decent NB circuit will have the ability to reduce impulse noise level, by several S-Units, when that interference is strong. Good ones, will remove enough of that interference, so you can't even tell it was ever there and you can hear all of the signals that were underneath that noise level.