Concept:The capital market and the money market differ mainly by the length or duration of the funds borrowed or lent.
Explanation:The capital market deals with long-term financial instruments such as shares, bonds, and debentures.
Funds raised through the capital market are used for fixed investments like buildings, machinery, and expansion projects.
In contrast, the money market handles short-term borrowing and lending, usually for periods of one year or less.
Therefore, the distinguishing feature of the capital market is that the loan or investment sought is long term.
Answer:B. Loan sought is long term.