Quotation marks do not appear at the opening and closing of a block quotation?

false

The inner quotation is treated just like the outer quotation in terms of capitalization, commas etc., but the quotation marks are single rather than double. e.g. She replied, "He only exclaimed, 'I...

Block quotations can use all punctuation marks, but they do not require quotation marks around the quote itself.

Never. You should always have quotation marks sorrounding a quote.

Quotation marks.