Q.1.10 Which of the following statements is correct? (2) (1) When a British firm invests in a bicycle manufacturing facility in South Africa, the amount concerned is entered as an inflow on the current account of the South African balance of payments. (2) When someone purchases a second‐hand car, the transaction is included in the calculation of GDP in the year the sale took place. (3) A deficit on the current account of the balance of payments indicates that the country exported more than it imported during the period in question. (4) In the base year, the value of nominal GDP is equal to the value of real GDP.

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