Balance of secondary income showed improvement from 2011 to 2012

Steps:

• Review balance of payments data for 2011 and 2012 across all components.
• Calculate changes: subtract 2011 values from 2012 values for each balance.
• Identify positive changes (improvement means less negative or more positive deficit/surplus).
• Compare: only secondary income balance increased positively.

Why D is correct:

• Secondary income balance, comprising current transfers like remittances and aid, rose due to higher inflows in 2012 per IMF definitions.

Why the others are wrong:

• A worsened as goods exports fell relative to imports.
• B deteriorated with declining service surpluses.
• C declined due to higher primary income outflows like investment returns.

Final answer: D