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UPSC
Daily Current Affairs
Daily CA Quiz
UPSC Prelims PYQs
Monthly Current Affairs
Resources

UPSC Daily Current Affairs Quiz : 20 January 2026

January 20, 2026
Daily Current Affairs Quiz

UPSC Daily Current Affairs Quiz : 20 January 2026

The Daily Current Affairs Quiz for UPSC is based on the PIB, The Hindu, Indian Express, and other reliable sources that we update every day on our website. This quiz is designed to help aspirants reinforce current affairs concepts and facts relevant to both Prelims and Mains in a quick and effective manner.

Start Daily Current Affairs Quiz by Simply click on Below Start Button:

Daily Current Affairs Quiz :20 January 2026

Total Questions: 05

1 / 5

Question 1: With reference to the proposal to link digital currencies on the BRICS agenda, consider the following statements:

The Reserve Bank of India has recommended that linking the Central Bank Digital Currencies (CBDCs) of BRICS countries be included in the agenda of the 2026 BRICS Summit.
The proposal aims to facilitate cross-border payments and may reduce reliance on the US dollar, though India has clarified it is not pursuing de-dollarisation.
All BRICS countries have fully launched their respective CBDCs for retail and cross-border use.
One mechanism being explored to manage trade imbalances under the proposed CBDC linkage is the use of bilateral foreign exchange swap arrangements between central banks.

Which of the statements given above are correct?

A. 1 and 2 only

B. 1, 2 and 4 only

C. 2 and 3 only

D. 1, 2, 3 and 4

Correct Answer: (b) 1, 2 and 4 only

Explanation:

Statement 1 Correct. The RBI has recommended to the Centre that a proposal to link the CBDCs of BRICS countries be placed on the agenda of the 2026 BRICS Summit. If accepted, this would be the first formal proposal of its kind within BRICS.
Statement 2 Correct. The objective is to make cross-border payments faster and cheaper, potentially reducing dependence on the US dollar. However, the RBI has explicitly stated that its efforts to internationalise the rupee are not aimed at de-dollarisation, maintaining policy nuance-an important UPSC-relevant distinction.
Statement 3 Incorrect. None of the BRICS members have fully launched their CBDCs. All five major members-India, China, Brazil, Russia, and South Africa-are currently running pilot projects only.
Statement 4 Correct To address imbalanced trade settlements, one idea under discussion is the use of bilateral foreign exchange swap arrangements between central banks, with periodic settlements (weekly or monthly).

2 / 5

Question 2: With reference to the recent World Economic Outlook update, consider the following statements:

The International Monetary Fund has raised India’s GDP growth projection for the financial year 2025–26 to 7.3%, citing stronger-than-expected economic performance in the latter half of the year.
According to the IMF, India’s inflation is expected to remain persistently above the target set by the Reserve Bank of India due to sustained food price pressures.

Which of the statements given above is/are correct?

A. 1 only

B. 2 only

C. Both 1 and 2

D. Neither 1 nor 2

Correct Answer: (a) 1 only

Explanation

Statement 1 Correct. The IMF, in its January 2026 World Economic Outlook update, upgraded India’s growth forecast for FY 2025–26 to 7.3%, attributing it to better-than-expected third-quarter growth and strong momentum in the fourth quarter.
Statement 2 Incorrect. The IMF expects India’s inflation to decline in 2025 and return close to the RBI’s target of 4%, largely due to subdued food prices, not sustained food inflation pressures.

3 / 5

Question 3: With reference to India–UAE relations, consider the following statements:

India and the United Arab Emirates have signed a Letter of Intent to work towards a Bilateral Strategic Defence Partnership, marking an evolution of existing defence cooperation.
The signing of this defence Letter of Intent legally binds India to provide military support to the UAE in the event of an armed conflict in the Gulf region.

Which of the statements given above is/are correct?

A. 1 only

B. 2 only

C. Both 1 and 2

D. Neither 1 nor 2

Correct Answer: (a) 1 only

Explanation:

Statement 1 Correct India and the UAE signed a Letter of Intent (LoI) for a Bilateral Strategic Defence Partnership during the visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan to India. According to India’s Foreign Secretary, this step represents a natural progression of already existing defence cooperation, not a sudden policy shift.
Statement 2 Incorrect The LoI does not create any legal or military obligation for India to participate in future conflicts in the Gulf region. It merely initiates discussions toward a framework agreement, and Indian officials have explicitly clarified that it is not intended to draw India into regional conflicts.

4 / 5

Question 4: With reference to recent tiger deaths in Kaziranga, consider the following statements:

Three tigers were found dead within a fortnight in Kaziranga National Park, and preliminary post-mortem findings suggest infighting as the primary cause.
Wildlife experts attribute such infighting in Kaziranga mainly to scarcity of prey species within the park.

Which of the statements given above is/are correct?

A. 1 only

B. 2 only

C. Both 1 and 2

D. Neither 1 nor 2

Correct Answer: (a) 1 only

Explanation:

Statement 1 Correct Within a span of two weeks, three tigers—including two females and one male-were found dead in different ranges of Kaziranga National Park and Tiger Reserve. Preliminary post-mortem reports indicate that infighting among tigers was the likely cause of death.
Statement 2 Incorrect Wildlife experts have clarified that prey scarcity is not an issue in Kaziranga. The park has a high diversity and abundance of prey species. Instead, infighting is being linked to territorial stress, as the tiger population has reached its upper carrying capacity, restricting dispersal beyond the core area.

5 / 5

Question 5: With reference to India’s diplomatic strategy in 2026 as discussed by the author, consider the following statements:

Inviting the institutional leadership of the European Union as chief guests on Republic Day reflects India’s recognition of the growing importance of bloc-level rule-making in trade, climate and technology.
As chair of BRICS in 2026, India is advised to steer the grouping towards practical delivery mechanisms rather than ideological posturing or de-dollarisation rhetoric.
According to the author, large multilateral forums such as the United Nations and the G-20 have become more effective instruments for delivery than smaller coalition-based groupings.

Which of the statements given above are correct?

A. 2 and 3 only

B. 1 and 2 only

C. 1 and 3 only

D. 1, 2 and 3

Correct Answer: (b) 1 and 2 only

Explanation:

Statement 1 Correct The presence of EU institutional leaders on Republic Day 2026 signals India’s shift towards engaging rule-setting blocs, as critical decisions on market access, data standards and sustainability are increasingly taken at the EU level, not just in national capitals.
Statement 2 Correct The author cautions that BRICS expansion has diluted coherence. As chair, India should focus on functional outcomes-such as better use of the New Development Bank-while avoiding anti-West or de-dollarisation narratives that could hurt India’s strategic and economic interests.
Statement 3 Incorrect The article argues the opposite: large multilateral forums like the UN and G-20 remain important for legitimacy but are weak on delivery due to great-power rivalry. Real outcomes are increasingly shaped by smaller, flexible coalitions such as the Quad.