February 2026 Edition
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February 2026 Current Affairs MCQs & Solutions
Top national & international current affairs questions for CSS, PMS, FPSC, PPSC, and NTS screening tests.
#641
Consider the following statements about the market activity on March 10, 2026: 1. The KSE-100 index gained over 9,000 points during the trading session. 2. The market halt was triggered by a 5% increase in the KSE-100 index. 3. The rally followed a significant decline in the index on the previous trading day. Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
Explanation: Statement 1 is correct as the index advanced 9,696.98 points. Statement 2 is incorrect because the halt was triggered by the KSE-30 index, not the KSE-100. Statement 3 is correct as the rally followed the historic drop on March 9. [Source: https://www.dawn.com/news/1980474/bulls-return-as-kse-100-surges-past-9000-points-market-closes-in-the-green, 10 Mar 2026]
#642
Which of the following is NOT a component of the export-boosting schemes approved by the ECC on July 28, 2026?
(a) Enhanced Export Finance Scheme (E-EFS)
(b) Direct cash grants for industrial electricity bills
(c) Performance-based rebate on incremental exports
(d) Long-Term Export Growth Financing Facility (LTEGFF)
Explanation: The approved package includes E-EFS, LTEGFF, and a performance-based rebate scheme. Direct cash grants for electricity bills are not part of the three specific schemes mentioned in the ECC approval. [Source: https://www.dawn.com/news/2018926/ecc-okays-rs255bn-for-export-boosting-schemes, 28 Jul 2026]
#643
Which of the following statements regarding the Australian market performance on July 27, 2026, is INCORRECT?
(a) The S&P/ASX 200 index rose to 8,851.30 points.
(b) Technology stocks jumped by 3.8%.
(c) Miners gained 2.1% during the session.
(d) The benchmark index fell by 0.9% on the previous Friday.
Explanation: The benchmark index fell by 0.8% on the previous Friday, not 0.9%. The other statements accurately reflect the market data from the session. [Source: https://www.brecorder.com/news/40431982/australian-shares-rise-nearly-1-as-middle-east-de-escalation-boosts-sentiment, 27 Jul 2026]
#644
Which of the following statements regarding the impact of the July 2026 oil price decline on the US economy is INCORRECT?
(a) It guarantees an immediate interest rate cut by the Federal Reserve.
(b) It provides the Federal Reserve with greater policy flexibility.
(c) It is expected to ease inflationary pressures.
(d) It follows a period where Brent crude had surged to $102 per barrel.
Explanation: While the decline in oil prices provides policy flexibility, it does not guarantee an interest rate cut, as market expectations were leaning toward a status quo or a future hike. The other statements accurately reflect the economic context described. [Source: https://www.brecorder.com/news/40431972/indian-bonds-rebound-as-easing-middle-east-tensions-drag-oil-lower, 27 Jul 2026]
#645
What is the total amount of subsidies approved by the Economic Coordination Committee (ECC) for export promotion schemes on July 28, 2026?
(a) Rs155 billion
(b) Rs455 billion
(c) Rs355 billion
(d) Rs255 billion
Explanation: The ECC approved Rs255 billion in subsidies to boost exports through three distinct incentive schemes. This funding is intended to address the stagnation of annual exports at the $30 billion mark. [Source: https://www.dawn.com/news/2018926/ecc-okays-rs255bn-for-export-boosting-schemes, 28 Jul 2026]
#646
On March 10, 2026, what was the primary reason cited for the rise in gold prices?
(a) A strengthening of the US dollar
(b) A weaker US dollar and easing energy costs
(c) An increase in global interest rates
(d) None of these
Explanation: Gold prices rose due to a weaker US dollar and expectations of lower inflation following a potential de-escalation in Middle East tensions, which caused oil prices to drop. A stronger dollar (Option A) typically makes gold more expensive for foreign buyers, leading to a price decline. [Source: https://www.dawn.com/news/1980485/gold-gains-on-weaker-dollar-easing-inflation-concerns, 10 Mar 2026]
#647
Consider the following statements about the market reaction on July 27, 2026: 1. Indian government bonds experienced a surge in yields due to rising oil prices. 2. The 10-year US Treasury yield eased to 4.64%. 3. Market participants assigned a 66% probability of a status quo in the upcoming Federal Reserve interest rate decision. Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
Explanation: Statement 1 is incorrect because Indian bond yields fell (rebounded) as oil prices decreased, not increased. Statements 2 and 3 are factually accurate according to the market data provided for the specified date. [Source: https://www.brecorder.com/news/40431972/indian-bonds-rebound-as-easing-middle-east-tensions-drag-oil-lower, 27 Jul 2026]
#648
Who presided over the Economic Coordination Committee meeting held on July 27, 2026, where the export subsidy package was approved?
(a) Finance Minister
(b) Minister for Commerce
(c) Prime Minister
(d) Governor State Bank
Explanation: Finance Minister Muhammad Aurangzeb chaired the ECC meeting that approved the export-boosting schemes. The committee is a key executive body responsible for economic decision-making in Pakistan. [Source: https://www.dawn.com/news/2018926/ecc-okays-rs255bn-for-export-boosting-schemes, 28 Jul 2026]
#649
Consider the following statements about the Australian market on July 27, 2026: 1. The S&P/NZX 50 index in New Zealand fell by 0.4%. 2. Financials rose to their highest level since April 22, 2026. 3. Markets have priced in a 50% chance of a rate hike at the next central bank meeting. Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
Explanation: Statement 1 and 2 are correct. Statement 3 is incorrect because the market priced in nearly a 30% chance of a rate hike, not 50%. [Source: https://www.brecorder.com/news/40431982/australian-shares-rise-nearly-1-as-middle-east-de-escalation-boosts-sentiment, 27 Jul 2026]
#650
Consider the following statements about the current economic environment as of March 10, 2026: 1. Gold prices are inversely related to the strength of the US dollar. 2. A potential de-escalation in the Middle East has led to a decrease in oil prices. 3. The Federal Reserve is expected to raise interest rates significantly at the March 18 meeting. Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
Explanation: Statements 1 and 2 are correct as gold prices rise when the dollar weakens, and oil prices fell due to de-escalation news. Statement 3 is incorrect because investors expect the Fed to keep rates steady, not raise them significantly. [Source: https://www.dawn.com/news/1980485/gold-gains-on-weaker-dollar-easing-inflation-concerns, 10 Mar 2026]
#651
What was the primary reason for the recent decline in Brent crude oil prices as of July 27, 2026?
(a) A global surplus in oil production
(b) A tentative truce between the US and Iran
(c) A significant drop in global industrial demand
(d) None of these
Explanation: Brent crude fell by more than 4% due to a tentative truce between the US and Iran, which halted a series of retaliatory attacks. This de-escalation reduced the geopolitical risk premium that had previously pushed oil prices above $100 per barrel. [Source: https://www.brecorder.com/news/40431973/copper-gains-on-mideast-de-escalation-oil-price-drop, 27 Jul 2026]
#652
Consider the following statements about the global commodity market as of July 27, 2026: 1. High energy prices are generally associated with increased inflation expectations and higher interest rates. 2. Copper is considered a growth-dependent commodity that can be negatively impacted by high interest rates. 3. The US dollar index has a negligible impact on the pricing of commodities traded in the greenback. Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
Explanation: Statements 1 and 2 are correct as they reflect standard economic relationships between energy costs, interest rates, and industrial demand. Statement 3 is incorrect because the US dollar index has a significant inverse relationship with commodity prices; a weaker dollar typically makes commodities cheaper for foreign buyers, thereby supporting prices. [Source: https://www.brecorder.com/news/40431973/copper-gains-on-mideast-de-escalation-oil-price-drop, 27 Jul 2026]
#653
Which of the following factors is NOT cited as a reason for the market rally on July 27, 2026?
(a) An immediate reduction in the SBP policy rate
(b) A sharp decline in global oil prices
(c) Easing geopolitical tensions in the Middle East
(d) Improved investor sentiment following a pause in combat
Explanation: The SBP maintained the policy rate at 11.5 percent rather than reducing it. Therefore, an immediate reduction in the policy rate is an incorrect statement regarding the events of that day. [Source: https://www.dawn.com/news/2018715/psx-opens-week-in-the-green-gains-more-than-7000-points-to-close-above-178000-mark, 27 Jul 2026]
#654
On March 9, 2026, the State Bank of Pakistan (SBP) maintained the key policy rate at which of the following levels?
(a) 8.5 percent
(b) 12.5 percent
(c) 10.5 percent
(d) 14.5 percent
Explanation: The SBP Monetary Policy Committee announced on March 9, 2026, that the policy rate would remain unchanged at 10.5 percent. This decision was made to maintain price stability amidst global economic uncertainty. [Source: https://www.dawn.com/news/1980133/sbp-maintains-policy-rate-at-105pc, 09 Mar 2026]
#655
Which of the following companies was among the leading performers contributing to the PSX benchmark index rally on July 27, 2026?
(a) Engro Fertilizers
(b) Lucky Cement
(c) United Bank Limited
(d) None of these
Explanation: While UBL, FFC, ENGROH, MEBL, and LUCK were identified as leading contributors, the options provided (Engro Fertilizers, Lucky Cement, United Bank Limited) are individual entities. Since all three are correct, 'None of these' is the appropriate choice as it implies none of the single-option choices exclusively represent the list of top performers. [Source: https://www.dawn.com/news/2018715/psx-opens-week-in-the-green-gains-more-than-7000-points-to-close-above-178000-mark, 27 Jul 2026]
#656
The KSE-100 index closed above which of the following thresholds on July 27, 2026?
(a) 168,000 points
(b) 198,000 points
(c) 188,000 points
(d) 178,000 points
Explanation: The KSE-100 index gained over 7,000 points to close at 178,262.33, successfully crossing the 178,000-point threshold. [Source: https://www.dawn.com/news/2018715/psx-opens-week-in-the-green-gains-more-than-7000-points-to-close-above-178000-mark, 27 Jul 2026]
#657
On July 27, 2026, the State Bank of Pakistan maintained the policy rate at which of the following levels?
(a) 10.5 percent
(b) 12.5 percent
(c) 11.5 percent
(d) 13.5 percent
Explanation: The State Bank of Pakistan maintained the policy rate at 11.5 percent during the announcement on July 27, 2026. Analysts viewed this as a cautious stance given the prevailing regional geopolitical tensions. [Source: https://www.dawn.com/news/2018715/psx-opens-week-in-the-green-gains-more-than-7000-points-to-close-above-178000-mark, 27 Jul 2026]
#658
Consider the following statements about the PSX performance on July 27, 2026: 1. The KSE-100 index gained more than 7,000 points during the session. 2. The market rally was partially attributed to the resumption of shipping through the Strait of Hormuz. 3. The index reached an intra-day peak of over 178,500 points. Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
Explanation: All three statements are factually accurate based on the market data from July 27, 2026. The index gained 7,241.13 points, investor sentiment improved due to hopes for shipping resumption, and the intra-day peak was 178,588.33 points. [Source: https://www.dawn.com/news/2018715/psx-opens-week-in-the-green-gains-more-than-7000-points-to-close-above-178000-mark, 27 Jul 2026]
#659
According to the SBP statement released on March 9, 2026, what was the inflation rate recorded in February 2026?
(a) 5.8 percent
(b) 7.0 percent
(c) 8.2 percent
(d) None of these
Explanation: The SBP reported that inflation rose to 5.8 percent in January and 7 percent in February 2026. Option D is incorrect because 7 percent is explicitly mentioned as the February figure. [Source: https://www.dawn.com/news/1980133/sbp-maintains-policy-rate-at-105pc, 09 Mar 2026]
#660
What was the unemployment rate in the United States as of the May 2026 report?
(a) 4.3 percent
(b) 4.1 percent
(c) 3.8 percent
(d) 4.5 percent
Explanation: The unemployment rate remained firm at 4.3 percent according to the May 2026 data. This stability in the labor market contributed to the market's belief that the Federal Reserve would maintain a hawkish stance. [Source: https://www.dawn.com/news/2005508/wall-street-ends-sharply-lower-as-chips-slide-jobs-data-fuels-rate-hike-fears, 05 Jun 2026]