🔥 05 July 2025 – Top Current Affairs MCQs | Daily GK for Competitive Exams

📰 Today’s Highlights – 5 July 2025

India continues to balance economic and diplomatic priorities. Trade Minister Piyush Goyal reaffirmed that trade agreements will only be pursued if framed in India’s national interest, rejecting rushed deadlines. India has proposed retaliatory tariffs at the WTO as leverage in U.S. auto and auto-parts tariff tussles. The RBI has announced a ₹1 trillion seven-day reverse repo auction to absorb surplus liquidity. Meanwhile, foreign portfolio investors are making their third monthly push into Indian equities, especially in financials and oil & gas sectors. Lastly, PM Modi’s South America tour progresses with his departure for Buenos Aires, ahead of the Brazil summit.

Daily Current Affairs – MCQs (5 July 2025)

1. **What did Trade Minister Goyal say about India‑U.S. trade talks?**
   A) Will meet U.S. deadlines
   B) Takes deals on national interest, not timelines
   C) Wants agreement by 9 July only
   D) Open to any deal terms
   Answer: B) Takes deals on national interest, not timelines
   Explanation: He emphasized India won’t rush deals to meet arbitrary timelines.

2. **What retaliatory step did India propose at the WTO?**
   A) Export subsidies
   B) Higher tariffs on U.S. auto products
   C) Devaluation of rupee
   D) Suspension of agricultural imports
   Answer: B) Higher tariffs on U.S. auto products
   Explanation: India plans duties totaling ~$725 million in response to U.S. auto tariffs.

3. **How much surplus liquidity did RBI report for early July?**
   A) ₹1 trillion
   B) ₹2.5 trillion
   C) ₹3.75 trillion
   D) ₹5 trillion
   Answer: C) ₹3.75 trillion
   Explanation: RBI noted a three-year high surplus of ₹3.75 trillion in early July.

4. **What operation did RBI announce on 4 July?**
   A) 14-day repo auction
   B) 7-day reverse repo auction
   C) Forex sale
   D) CRR hike
   Answer: B) 7-day reverse repo auction
   Explanation: RBI will absorb liquidity via ₹1 trillion variable rate reverse repo from 4 July.

5. **What economic metric has seen strong inflows for three months?**
   A) FDI
   B) FPI in equities
   C) Bank deposits
   D) Retail asset funds
   Answer: B) FPI in equities
   Explanation: Foreign portfolio investors have been net buyers of Indian stocks for three straight months.

6. **Which sector led FPI inflows in June?**
   A) Pharma
   B) Financials and oil/gas
   C) IT
   D) Real estate
   Answer: B) Financials and oil/gas
   Explanation: Financials received over 60% of the total FPI inflows, alongside oil & gas.

7. **Where is PM Modi headed after Trinidad & Tobago?**
   A) Brazil
   B) Namibia
   C) Argentina (Buenos Aires)
   D) South Africa
   Answer: C) Argentina (Buenos Aires)
   Explanation: He departs next for Buenos Aires before the Brazil summit.

8. **What honour did PM Modi receive in Trinidad?**
   A) Nobel Prize
   B) Highest civilian award of T&T
   C) Honorary citizenship
   D) Economic Impact Medal
   Answer: B) Highest civilian award of Trinidad & Tobago
   Explanation: He was conferred the country’s highest civilian honour during the visit.

9. **Which summit will Modi attend July 5–8 in Brazil?**
   A) G20
   B) UNGA
   C) OPEC
   D) BRICS
   Answer: D) BRICS
   Explanation: He will be in Rio for the BRICS summit from 5 to 8 July.

10. **Why are FPIs attracted to Indian equities?**
    A) High inflation
    B) Attractive valuations and rate cuts
    C) Weak growth
    D) Currency depreciation
    Answer: B) Attractive valuations and rate cuts
    Explanation: Lower rates and reasonable prices are drawing FPIs to Indian markets.

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✅ Summary:

Today’s quiz covers diplomatic stances in trade talks, strategic economic measures by the RBI, sustained foreign investment trends, PM Modi’s tour, and India’s active role in global trade diplomacy.