The correct answer is A. short-term.
A short-term financial instrument is a debt instrument that has a maturity of one year or less. Short-term financial instruments are typically used to finance short-term needs, such as working capital or seasonal fluctuations in sales. They are also used to hedge against interest rate risk.
Long-term financial instruments are debt instruments that have a maturity of more than one year. Long-term financial instruments are typically used to finance long-term projects, such as the construction of a new factory or the purchase of a new fleet of vehicles. They are also used to invest in long-term assets, such as real estate or stocks.
Intermediate-term financial instruments are debt instruments that have a maturity of between one and five years. Intermediate-term financial instruments are typically used to finance medium-term needs, such as the purchase of new equipment or the expansion of a business. They are also used to invest in medium-term assets, such as bonds or mortgages.
Capital term is not a term used in financial markets.