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Answer (A) is correct . Extension of credit in a foreign currency would result in receiving payment in less valuable dollars if the foreign currency became less valuable. Thus one would not want to encourage granting trade credit in a foreign country when the country’s currency is expected to lose value.

Answer (B) is incorrect because Investing monetary assets into nonmonetary assets is advantageous when the monetary unit is going to lose value.
Answer (C) is incorrect because It is advantageous to become a debtor when the monetary unit is losing value.
Answer (D) is incorrect because It is advantageous to become a debtor when the monetary unit is losing value.