Global Dynamics & Hot Issues 2026: Essential MCQs for NRB & Loksewa Exams

Master the 2026 Global Dynamics and Hot Issues for Nepal Rastra Bank (NRB) and competitive exams. Get expert-curated MCQs on UN WESP 2026, Nepal’s LDC graduation, BRICS 2026, and digital economy trends.

1. According to the United Nations World Economic Situation and Prospects (WESP) 2026, global GDP growth is projected to be:

A) 2.2%

B) 2.7%

C) 3.1%

D) 3.8%

 

2. Which of the following is identified as the "Engine of Global Growth" in 2026 with a projected expansion of 6.6%?

A) China

B) India

C) USA

D) Brazil

 

 3. In 2026, the term "Trade Fragmentation" primarily refers to:

A) The total collapse of global shipping routes.

B) The increase in digital trade over physical goods.

C) The shift toward trading within specific geopolitical blocs rather than globally.

D) The breakdown of the World Trade Organization (WTO).

 

4. What is the projected global trade growth rate for 2026, reflecting the impact of rising tariffs?

A) 3.8%

B) 2.2%

C) 1.5%

D) 0.5%

 

5. Which country will hold the BRICS Chairship from January 1 to December 31, 2026?

A) Russia

B) Brazil

C) India

D) South Africa

 

6. The "K-shaped recovery" observed in major economies like the US in 2026 describes:

A) A recovery where all sectors grow at the same pace.

B) A divergence where high-income groups benefit while low-income groups are squeezed by costs.

C) A rapid decline followed by an even more rapid increase.

D) A situation where only the tech sector fails.

 

7. By mid-2026, nearly three-quarters of G20 nations are expected to implement what for cross-border payments?

A) A single global currency.

B) Tokenized digital payment systems (CBDCs/Stablecoins).

C) A return to physical gold settlements.

D) Elimination of all transaction fees.

 

8. Which global issue is cited as the "single largest obstacle" to achieving 2026 climate goals?

A) Lack of renewable technology.

B) The USD 2 trillion annual financing gap for the green transition.

C) Low public interest in electric vehicles.

D) Excess production of coal in Europe.

 

9. In 2026, the "Debtor’s Dilemma" refers to:

A) Debtors refusing to pay back loans.

B) Low interest rates make debt too cheap.

C) Central banks are stopping the purchase of public debt, leaving a gap in the bond market.

D) The total cancellation of all student debt in the US.

 

10. Nepal is scheduled to graduate from "Least Developed Country" (LDC) status in which month of 2026?

A) January

B) July

C) November

D) December

 

11. The "De-dollarization" strategies discussed by BRICS+ in 2026 focus on:

A) Using non-dollar rails for trade, energy payments, and remittances.

B) A legal ban on using the US Dollar worldwide.

C) Fixing all exchange rates to the Chinese Yuan.

D) Returning to the barter system for oil.

 

12. Which global event in 2026 is expected to influence Nepal’s tourism and aviation sectors?

A) The launch of a new global airline alliance.

B) Ongoing geopolitical tensions in the Middle East are affecting international flight paths.

C) The completion of a new airport in Antarctica.

D) The global ban on private jets.

 

13. In 2026, "Fiscal Capitalism" describes a trend where governments:

A) Reduce spending to zero to pay off debt.

B) Pursue sustained fiscal expansion and stimulus to cater to voters, often ignoring debt levels.

C) Hand over all tax collection to private banks.

D) Nationalize all private industries.

 

14. According to the IMF, global headline inflation in 2026 is expected to settle around:

A) 1.5%

B) 2.0%

C) 3.8%

D) 6.5%

 

15. Which breakthrough technology is predicted to "revolutionize code writing" and boost productivity in 2026?

A) 6G Internet

B) Generative Coding (AI)

C) Quantum Hardware

D) Virtual Reality Meetings

 

16. "Carbon Border Adjustment Mechanisms" (CBAM) are becoming a hot issue in 2026. These are primarily:

A) Carbon taxes on imports from countries with less stringent climate policies.

B) Grants given to countries to plant trees.

C) Taxes on domestic carbon emissions only.

D) A system to measure oxygen levels at borders.

 

17. Which major economy is facing "structural sluggishness" in 2026 due to real estate stress and local government debt?

A) USA

B) India

C) China

D) Japan

 

18. The "G20 Common Framework" is a hot topic in 2026 because it aims to:

A) Create a common language for all G20 citizens.

B) Provide a structured and transparent process for debt restructuring for low-income countries.

C) Standardize military equipment across the world.

D) Regulate the price of agricultural exports.

 

19. For a landlocked country like Nepal, the 2026 rise in "Protectionism" is a threat because:

A) It makes it easier to export goods.

B) It increases trade barriers and reduces the effectiveness of open-market systems.

C) It lowers the cost of transportation.

D) It results in more foreign aid.

 

20. In early 2026, the global "Policy Rate" trend among major central banks is shifting toward:

A) Gradual easing (rate cuts) as inflation cools.

B) Constant hiking to 10% or higher.

C) Fixing rates at exactly 4% for five years.

D) Abolishing interest rates entirely.

 

21. Which global report is known as the "Green Bible" for the economic impacts of climate change in 2026?

A) Global Economic Prospects

B) WESP (World Economic Situation and Prospects) Special Focus

C) Doing Business Report

D) Human Development Index

 

22. "Near-shoring" and "Friend-shoring" in 2026 are strategies used by MNCs to:

A) Move all factories to the middle of the ocean.

B) Only hire friends and family for executive roles.

C) Move supply chains closer to home or to politically aligned countries to reduce risk.

D) Stop all international trade.

 

23. Which organization recently approved an extension of the "Extended Credit Facility" (ECF) for Nepal in late 2025/early 2026?

A) World Bank

B) IMF

C) ADB

D) AIIB

 

24. The concept of "Digital Public Infrastructure" (DPI), championed by India in 2026, refers to:

A) Secure and interoperable digital systems like payments and ID that enable service delivery.

B) Building physical bridges with digital sensors.

C) The privatization of the internet.

D) A global social media platform owned by the UN.

 

25. What is the "Neutral Level" that many central banks are aiming for in their policy rates by late 2026?

A) 0%

B) Around 2.5%

C) Exactly 5%

D) 10%

Answer Key & Brief Explanations:

Q.No.	Answer	Full Form(s)	Brief Economic Explanation
1	B	WESP: World Economic Situation and Prospects	Reflects a slow but steady recovery from the pandemic-debt shock.
2	B	GDP: Gross Domestic Product	India's growth is driven by DPI (Digital Public Infrastructure) and service exports.
3	C	N/A	Refers to "Friend-shoring"—trading only with politically aligned allies.
4	B	N/A	Global trade is cooling as countries increase tariffs to protect domestic jobs.
5	C	BRICS: Brazil, Russia, India, China, South Africa	India’s chairship is focusing on integrating the Global South into finance.
6	B	N/A	A "divergent" recovery where the tech-wealthy rise while the poor face inflation.
7	B	CBDC: Central Bank Digital Currency	Aims to bypass traditional banking (SWIFT) for faster cross-border payments.
8	B	USD: United States Dollar	The "Hot Issue" is that green energy transition is stalled by a lack of funds.
9	C	QT: Quantitative Tightening	Central banks are reducing balance sheets, forcing governments to pay higher rates.
10	C	LDC: Least Developed Country	Nepal will officially transition to a "Developing Country" on Nov 24, 2026.
11	A	N/A	Reducing reliance on the USD for bilateral trade to avoid US-led sanctions risk.
12	B	N/A	Conflicts affect fuel costs and air routes, critical for Nepal's tourist arrivals.
13	B	N/A	Governments are prioritizing popularity/growth over strict debt management.
14	C	IMF: International Monetary Fund	The latest IMF Update (Jan 2026) says 3.8%. Inflation is falling but remains "sticky" above the desired 2% target.
15	B	AI: Artificial Intelligence	AI-driven coding is expected to double white-collar productivity in 2026.
16	A	CBAM: Carbon Border Adjustment Mechanism	A tax by wealthy nations (like the EU) on carbon-heavy imports.
17	C	N/A	China is shifting from a "Real Estate" economy to "High-End Manufacturing."
18	B	G20: Group of Twenty	A framework to help debt-distressed nations negotiate with all creditors.
19	B	N/A	Protectionism hurts landlocked Nepal's access to competitive global markets.
20	A	N/A	Central banks are finally cutting rates as "price stability" is slowly achieved.
21	B	WESP: World Economic Situation and Prospects	A flagship UN report focusing on global macroeconomic stability.
22	C	MNC: Multinational Corporation	Relocating supply chains to "nearby" or "friendly" nations to avoid risk.
23	B	ECF: Extended Credit Facility	An IMF program providing liquidity to Nepal to maintain its BoP (Balance of Payments).
24	A	DPI: Digital Public Infrastructure	Building open-source digital blocks for banking and identity (like Nepal's NPS).
25	B	N/A	The "R-Star" or Neutral Rate where growth is steady and inflation is stable.