January 2026 Edition
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January 2026 Current Affairs MCQs & Solutions
Top national & international current affairs questions for CSS, PMS, FPSC, PPSC, and NTS screening tests.
#1401
According to the Exchange Companies Association of Pakistan, what was the primary driver for the decline in dollar sales to banks during the first 10 months of 2026?
(a) Increased investment in domestic manufacturing
(b) Diversion of funds into cryptocurrency trading
(c) Sharp rise in official export-led remittances
(d) Government-imposed limits on foreign currency accounts
Explanation: The chairman of the Exchange Companies Association of Pakistan noted that billions of dollars were diverted from the banking system into illegal cryptocurrency investments. This outflow contributed to the reduction in dollar sales to banks. [Source: https://www.dawn.com/news/2018391/war-dries-up-unofficial-dollar-inflows, 26 Jul 2026]
#1402
The Virtual Assets Act 2026 was passed to regulate which of the following sectors in Pakistan?
(a) Cryptocurrency and digital asset providers
(b) Traditional textile export manufacturing
(c) Informal hundi and hawala networks
(d) Cross-border physical commodity trade
Explanation: The Virtual Assets Act 2026 provides a regulatory framework for licensed virtual asset providers, allowing banks to facilitate services for the sector. This is distinct from the informal hundi/hawala systems which remain illegal. [Source: https://www.dawn.com/news/2018391/war-dries-up-unofficial-dollar-inflows, 26 Jul 2026]
#1403
Which of the following statements regarding the Virtual Assets Act 2026 is INCORRECT?
(a) It allows regulated banks to open accounts for entities registered under the Pakistan Virtual Assets Regulatory Authority.
(b) It establishes a framework for licensed virtual asset providers to operate within the formal financial system.
(c) It was passed in the same year that Pakistan lifted its eight-year ban on crypto-related banking activity.
(d) It permits banks to use customer deposits to trade or invest in digital assets for profit.
Explanation: The Act explicitly prohibits banks from using their own capital or customer deposits to trade, hold, or invest in digital assets. Therefore, is the incorrect statement. [Source: https://www.dawn.com/news/2018391/war-dries-up-unofficial-dollar-inflows, 26 Jul 2026]
#1404
All of the following statements regarding the market conditions on July 27, 2026, are true EXCEPT:
(a) The Federal Reserve is expected to definitely raise interest rates by 50 basis points.
(b) Bond markets received a boost from easing inflation fears.
(c) Brent crude prices experienced a decline.
(d) Yemen’s Houthis attacked Saudi oil installations.
Explanation: The market only implies a one-in-three chance of a rate hike, and analysts remain uncertain about the outcome, making the claim of a definite 50 basis point hike false. The other options accurately reflect the geopolitical and economic situation described. [Source: https://www.brecorder.com/news/40431958/shares-bonds-make-guarded-gains-as-oil-slips, 27 Jul 2026]
#1405
In which month of 2026 did the Reserve Bank of India announce the dollar-inflow schemes that raised $32 billion?
(a) April 2026
(b) June 2026
(c) May 2026
(d) July 2026
Explanation: The dollar-inflow schemes were officially announced by the central bank in June 2026, leading to the reported accumulation of funds by late July 2026. [Source: https://www.brecorder.com/news/40431961/indian-banks-have-raised-32-bln-under-dollar-inflow-schemes-rbi-chief-tells-hindu-businessline, 27 Jul 2026]
#1406
Which of the following statements regarding the July 26, 2026, Caspian Sea incident is INCORRECT?
(a) Iran admitted to providing military cargo to Russia via the Caspian Sea.
(b) The attack resulted in the death of one sailor.
(c) Ukraine claimed the strike targeted vessels under international sanctions.
(d) The Iranian foreign ministry summoned the Ukrainian charge d'affaires.
Explanation: Iran explicitly asserted that it has never intervened in the conflict between Russia and Ukraine, making the claim that it admitted to transporting military cargo factually incorrect. The other three statements accurately reflect the reported details of the event. [Source: https://www.dawn.com/news/2018502/iran-accuses-ukraine-of-deadly-attack-on-ship-in-caspian-sea, 26 Jul 2026]
#1407
According to the RBI chief, how much capital has been attracted by the dollar-mobilization schemes announced in June 2026?
(a) Nearly $15 billion
(b) Nearly $25 billion
(c) Nearly $32 billion
(d) Nearly $40 billion
Explanation: RBI chief Sanjay Malhotra confirmed that the dollar-mobilization schemes have successfully attracted nearly $32 billion in inflows as of July 2026. This liquidity helps the central bank manage currency volatility. [Source: https://www.brecorder.com/news/40431960/indian-rupee-set-to-rally-after-crude-drops-on-mideast-respite-rbi-led-inflows-build, 27 Jul 2026]
#1408
As of July 27, 2026, what is the primary factor contributing to the expected strengthening of the Indian rupee alongside RBI-led inflows?
(a) A significant decline in global crude oil prices
(b) An increase in domestic interest rates by the central bank
(c) A surge in foreign direct investment in the manufacturing sector
(d) None of these
Explanation: The decline in Brent crude prices, which fell to $93.02, reduces India's import bill, thereby supporting the rupee. RBI-led inflows are the secondary factor mentioned, making option A the correct primary driver. [Source: https://www.brecorder.com/news/40431960/indian-rupee-set-to-rally-after-crude-drops-on-mideast-respite-rbi-led-inflows-build, 27 Jul 2026]
#1409
Consider the following statements about the Indian economic context on July 27, 2026: 1. The recent decline in oil prices is linked to a temporary de-escalation in US-Iran tensions. 2. The RBI's dollar-mobilization schemes have attracted more capital than initial market expectations. 3. India's heavy reliance on crude imports makes its currency highly sensitive to global oil price volatility. Which of the statements given above 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 correct: the oil price drop is tied to the US-Iran pause, the $32 billion inflow exceeded expectations, and India's import dependency is a well-documented structural vulnerability for the rupee. [Source: https://www.brecorder.com/news/40431960/indian-rupee-set-to-rally-after-crude-drops-on-mideast-respite-rbi-led-inflows-build, 27 Jul 2026]
#1410
Consider the following statements about the July 26, 2026, Caspian Sea incident: 1. The attack involved the use of long-range drone strikes. 2. The Iranian vessel was reported to have exploded following the strike. 3. The Ukrainian President denied that any military cargo was being transported by the targeted vessels. 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 accurate based on the reports of the drone strikes and the resulting explosion. Statement 3 is incorrect because the Ukrainian President and intelligence services explicitly claimed the vessels were involved in transporting military cargo. [Source: https://www.dawn.com/news/2018502/iran-accuses-ukraine-of-deadly-attack-on-ship-in-caspian-sea, 26 Jul 2026]
#1411
According to the RBI Governor, what is the primary source of the $32 billion raised through dollar-inflow schemes as of July 2026?
(a) Foreign portfolio investments in equity
(b) Foreign currency non-resident deposit scheme
(c) Direct foreign institutional investment
(d) None of these
Explanation: The RBI Governor identified the Foreign Currency Non-Resident (FCNR) deposit scheme as the primary contributor to the $32 billion inflow. Foreign portfolio investments in debt securities accounted for a smaller portion of approximately $7 billion. [Source: https://www.brecorder.com/news/40431961/indian-banks-have-raised-32-bln-under-dollar-inflow-schemes-rbi-chief-tells-hindu-businessline, 27 Jul 2026]
#1412
Which of the following central banks is scheduled to hold a policy meeting on Thursday, July 30, 2026?
(a) Bank of England
(b) Bank of Japan
(c) Federal Reserve
(d) None of these
Explanation: The Bank of England is scheduled to hold its meeting on Thursday, while the Federal Reserve meets on Wednesday and the Bank of Japan on Friday. None of the other options match the Thursday schedule. [Source: https://www.brecorder.com/news/40431958/shares-bonds-make-guarded-gains-as-oil-slips, 27 Jul 2026]
#1413
Consider the following statements about the economic situation reported by the RBI in July 2026: 1. The $32 billion inflow is expected to improve India's balance of payments. 2. Increased government cash balances have contributed to the dollar inflows not fully reflecting on rupee liquidity. 3. The RBI has observed clear evidence that FCNR flows are primarily due to the rebooking of deposits. 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 as per the RBI Governor's assessment. Statement 3 is incorrect because the Governor explicitly stated that there is no evidence that the bulk of FCNR flows are due to the rebooking of deposits. [Source: https://www.brecorder.com/news/40431961/indian-banks-have-raised-32-bln-under-dollar-inflow-schemes-rbi-chief-tells-hindu-businessline, 27 Jul 2026]
#1414
Which central bank official is scheduled to speak on July 28, 2026, regarding the economic outlook?
(a) Adrian Orr
(b) Philip Lowe
(c) Michele Bullock
(d) Glenn Stevens
Explanation: RBA Governor Michele Bullock is scheduled to speak on Tuesday, July 28, 2026. Markets are anticipating her comments for potential hawkish signals amidst regional geopolitical tensions. [Source: https://www.brecorder.com/news/40431969/australia-nz-dollars-climb-as-oil-slide-eases-rate-concerns, 27 Jul 2026]
#1415
Which of the following statements regarding the market conditions on July 27, 2026, is INCORRECT?
(a) The probability of an RBA rate hike in August increased to 60%.
(b) The New Zealand dollar added 0.2% against the US dollar.
(c) Australian three-year bond yields fell by 9 basis points.
(d) The Australian dollar rose 0.2% to $0.7001.
Explanation: The probability of an RBA rate hike in August actually decreased to 30% from 40% due to lower oil prices. The other statements accurately reflect the market data reported on that date. [Source: https://www.brecorder.com/news/40431969/australia-nz-dollars-climb-as-oil-slide-eases-rate-concerns, 27 Jul 2026]
#1416
Consider the following statements about the market environment on July 27, 2026: 1. The decline in oil prices was attributed to a pause in Gulf fighting. 2. Markets perceive a high certainty that the Federal Reserve will implement a rate hike. 3. The Bank of Japan is expected to hold its policy steady during its upcoming meeting.
(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 de-escalation lowered oil prices. Statement 3 is correct as the Bank of Japan is expected to hold steady. Statement 2 is incorrect because market participants view the Fed's decision as unusually uncertain, not highly certain. [Source: https://www.brecorder.com/news/40431958/shares-bonds-make-guarded-gains-as-oil-slips, 27 Jul 2026]
#1417
Which of the following companies reported beating first-quarter profit expectations as of July 27, 2026?
(a) Tata Consumer
(b) Bank of Baroda
(c) HDFC Bank
(d) Axis Bank
Explanation: Tata Consumer reported beating profit expectations due to steady consumer demand. In contrast, Bank of Baroda reported a profit drop, and private lenders like HDFC and Axis faced margin concerns. [Source: https://www.brecorder.com/news/40431956/indian-shares-set-to-open-higher-breaking-losing-run-as-oil-slides, 27 Jul 2026]
#1418
Which of the following statements regarding the market situation on July 27, 2026, is INCORRECT?
(a) The US dollar index slipped to 101.23.
(b) Brent crude prices increased due to heightened military activity.
(c) The British pound rose against the US dollar.
(d) The euro appreciated against the US dollar.
Explanation: Brent crude prices actually decreased (dropped) due to the pause in military strikes, not increased. Options A, B, and D are factually accurate based on the provided market data. [Source: https://www.brecorder.com/news/40431957/dollar-pulls-back-as-us-iran-attacks-pause-oil-drops, 27 Jul 2026]
#1419
Which individual is identified as the Chair of the Federal Reserve in the context of the July 2026 policy discussions?
(a) Jerome Powell
(b) Kevin Warsh
(c) Sally Auld
(d) None of these
Explanation: The report identifies Kevin Warsh as the Chair of the Federal Reserve whose position on potential rate hikes remains a subject of market uncertainty. Jerome Powell is a common distractor as a former/actual chair, but the text specifies Warsh. [Source: https://www.brecorder.com/news/40431958/shares-bonds-make-guarded-gains-as-oil-slips, 27 Jul 2026]
#1420
Which of the following airline companies saw their share prices increase on July 27, 2026?
(a) Lufthansa
(b) Air France
(c) British Airways
(d) Emirates
Explanation: Lufthansa, along with IAG and Ryanair, saw their share prices rise as lower oil prices improved their operational outlook. The other options were not mentioned as specific gainers in the report. [Source: https://www.brecorder.com/news/40431990/european-shares-climb-as-us-iran-peace-optimism-lifts-risk-sentiment, 27 Jul 2026]