Terms of trade deterioration Steps:

• Terms of trade (ToT) = (index of export prices / index of import prices) × 100.
• 2005 ToT: (124.1 / 57.0) × 100 ≈ 217.7 (exports relatively expensive).
• 2015 ToT: (48.1 / 120.8) × 100 ≈ 39.8 (exports relatively cheap).
• ToT decreased from 217.7 to 39.8, so it fell over the period.

Why D is correct:

• Terms of trade fell per the formula ToT = P_x / P_m, as the ratio dropped from ~2.18 to ~0.40, meaning more exports needed to buy the same imports (deterioration by definition).

Why the others are wrong:

• A: No trade volume data, so cannot assess current account (exports minus imports in value).
• B: Balance of payments sums to zero by accounting identity; no capital/financial flow info.
• C: Price shifts may reflect world prices, not just exchange rate; insufficient evidence for appreciation.

Final answer: D