#781

Which Asian nation enacted a Free Trade Agreement with the Maldives that entered into force on January 1, 2025?

(a) India

(b) China

(c) Japan

(d) South Korea

Explanation: The China-Maldives Free Trade Agreement officially entered into force on January 1, 2025, boosting Chinese exports to the island nation.

#782

What was the primary driver of the 'sticky' inflation observed in the United States throughout 2025?

(a) Plummeting oil prices

(b) New tariffs and trade protectionism

(c) Collapse in consumer demand

(d) Rapid adoption of AI

Explanation: Economists attributed the persistent 'sticky' inflation in the US partly to new tariffs and trade fragmentation, which kept import prices elevated.

#783

Which organization hosted its first-ever summit on the African continent in November 2025?

(a) G7

(b) G20

(c) NATO

(d) APEC

Explanation: The G20 Leaders' Summit was held in South Africa in November 2025, the first time the group has met on African soil.

#784

In 2024-2025, the 'Magnificent Seven' stocks continued to drive market performance, primarily fueled by hype in:

(a) Green Hydrogen

(b) Artificial Intelligence (AI)

(c) Blockchain

(d) Virtual Reality

Explanation: The massive valuation growth of US tech giants (Magnificent Seven) was largely driven by the boom in Generative AI technologies and infrastructure.

#785

Global trade in 2025 was characterized by a trend known as 'geo-economic fragmentation', which refers to:

(a) The seamless integration of all global markets

(b) The splitting of trade and investment flows along geopolitical lines

(c) The global adoption of a single currency

(d) The elimination of all tariffs

Explanation: Fragmentation refers to countries trading more with geopolitical allies ('friend-shoring') and less with rivals, reducing global efficiency.

#786

The OECD's 2025 Global Debt Report highlighted that developing countries are spending more on what than on health or education?

(a) Infrastructure

(b) Debt Interest Payments

(c) Military

(d) Foreign Aid

Explanation: A record number of developing countries now spend more on servicing their debt interest than they do on vital social services like health or education.

#787

Which European economy was forecast to have the slowest growth among major Eurozone nations in 2025, struggling with industrial stagnation?

(a) Spain

(b) Germany

(c) Greece

(d) Ireland

Explanation: Germany was projected to have very weak growth (around 0.2% to 0.8%), often labeled the 'sick man of Europe' due to high energy costs and weak industrial output.

#788

In 2025, which asset class saw increased institutional adoption due to the approval of Spot ETFs in the US?

(a) Carbon Credits

(b) Bitcoin / Cryptocurrency

(c) Rare Earth Metals

(d) Water Rights

Explanation: The approval of Bitcoin Spot ETFs in the US (early 2024) paved the way for significant institutional capital to enter the crypto market throughout 2024 and 2025.

#789

What is 'Friend-shoring', a trend that gained momentum in 2025?

(a) Moving manufacturing to the cheapest possible country

(b) Relocating supply chains to politically allied countries

(c) Outsourcing customer service to AI bots

(d) Sharing technology with competitor nations

Explanation: Friend-shoring is the practice of moving supply chains to countries that are geopolitical allies to reduce the risk of disruption from conflict or sanctions.

#790

China's economic growth target for 2025 remained around which figure, despite property sector headwinds?

(a) 3%

(b) 5%

(c) 8%

(d) 10%

Explanation: The Chinese government continued to target 'around 5%' growth, though international observers like the IMF projected slightly lower actual performance (approx. 4.5-4.8%).

#791

Which commodity price surged in 2024-2025 due to booming demand from data centers and the AI industry?

(a) Copper

(b) Cotton

(c) Wheat

(d) Lumber

Explanation: Copper prices rose significantly as it is essential for the power grids and infrastructure needed to support energy-hungry AI data centers.

#792

What significant currency trend occurred in 2024-2025 regarding the US Dollar?

(a) It collapsed to historic lows

(b) It remained strong due to high US interest rates

(c) It was replaced by the Euro as the top reserve currency

(d) It was pegged to Gold

Explanation: The US Dollar remained strong against other currencies because the Federal Reserve kept interest rates higher for longer than other central banks.

#793

Which Latin American country is developing a massive offshore oil boom that significantly boosted its GDP in 2024-2025?

(a) Venezuela

(b) Guyana

(c) Chile

(d) Peru

Explanation: Guyana has experienced the world's fastest GDP growth rates in recent years due to massive new offshore oil discoveries.

#794

The 'RCEP' trade bloc, which eliminated further tariffs in 2025, includes China and which key US ally?

(a) Canada

(b) United Kingdom

(c) Japan

(d) Mexico

Explanation: RCEP (Regional Comprehensive Economic Partnership) includes China, Japan, South Korea, Australia, New Zealand, and ASEAN nations.

#795

Which country faced a 'technical recession' in late 2023/early 2024 but recovered slightly in 2025?

(a) India

(b) United Kingdom

(c) United States

(d) Vietnam

Explanation: The UK entered a shallow technical recession (two quarters of negative growth) at the end of 2023 but returned to modest growth in 2024-2025.

#796

The 'MiCA' (Markets in Crypto-Assets) regulation, fully effective in 2024-2025, applies to which jurisdiction?

(a) United States

(b) European Union

(c) China

(d) Global (UN)

Explanation: MiCA is the European Union's comprehensive legal framework for crypto-assets, the first of its kind in a major jurisdiction.

#797

Which global shipping route faced severe disruption in 2024-2025 due to Houthi attacks, raising global freight costs?

(a) Panama Canal

(b) Red Sea / Suez Canal

(c) Strait of Malacca

(d) English Channel

Explanation: Attacks on commercial shipping in the Red Sea forced vessels to divert around Africa, increasing shipping times and costs significantly.

#798

What is the 'middle-income trap' that China is trying to avoid in its 2025 economic planning?

(a) Getting stuck with too much debt

(b) Stagnating at a middle-income level without becoming a high-income advanced economy

(c) Having a population that is too young

(d) Relying too much on agricultural exports

Explanation: The middle-income trap occurs when a developing economy loses its competitive edge in cheap labor but hasn't yet developed the innovation to compete with rich nations.

#799

The 'Global Minimum Tax' deal (Pillar Two), implemented by many nations in 2024-2025, sets a minimum corporate tax rate of:

(a) 10%

(b) 15%

(c) 21%

(d) 25%

Explanation: The OECD-led deal ensures that multinational corporations pay a minimum tax rate of 15% in every jurisdiction where they operate.

#800

Which Southeast Asian nation has become a major hub for 'China Plus One' manufacturing strategies in 2024-2025?

(a) Myanmar

(b) Laos

(c) Vietnam

(d) Brunei

Explanation: Vietnam has been the primary beneficiary of companies diversifying supply chains away from China (China Plus One strategy).

June 2025 Current Affairs MCQs & Solutions