The correct answer is C. intermediate term.
In financial markets, the term of a financial instrument is the length of time between the issue of the instrument and its maturity. Instruments with maturities of less than one year are considered short-term, instruments with maturities of one to five years are considered intermediate-term, and instruments with maturities of more than five years are considered long-term.
Intermediate-term debt instruments are typically issued by governments, corporations, and financial institutions. They are used to finance a variety of activities, such as capital expenditures, working capital needs, and mergers and acquisitions. Intermediate-term debt instruments are typically considered to be less risky than long-term debt instruments, but more risky than short-term debt instruments. This is because intermediate-term debt instruments are exposed to interest rate risk for a longer period of time than short-term debt instruments, but for a shorter period of time than long-term debt instruments.
Here is a brief explanation of each option:
- Short-term debt instruments are typically issued with maturities of less than one year. They are used to finance short-term needs, such as working capital and seasonal fluctuations in sales. Short-term debt instruments are typically considered to be less risky than long-term debt instruments, because they are not exposed to interest rate risk for as long a period of time.
- Long-term debt instruments are typically issued with maturities of more than five years. They are used to finance long-term needs, such as capital expenditures and acquisitions. Long-term debt instruments are typically considered to be more risky than short-term debt instruments, because they are exposed to interest rate risk for a longer period of time.
- Capital term is not a standard term in financial markets. It may be used to refer to long-term debt, but it is more likely to be used to refer to the total amount of capital that a company has available to invest.