Step 1: Recall relation between antenna length and wavelength.
Antenna length is usually proportional to wavelength, typically \(\lambda/4\).
Step 2: Compare wavelengths of AM and FM.
\[
\lambda = \frac{c}{f}
\]
AM frequency \(f_{AM}=1020\,kHz\) is much smaller, so wavelength is very large.
FM frequency \(f_{FM}=89.5\,MHz\) is much higher, so wavelength is small.
Step 3: Conclusion based on wavelength.
Longer wavelength \(\Rightarrow\) longer antenna needed.
So AM requires longer antenna and FM requires shorter antenna.
Final Answer:
\[
\boxed{\text{(A) longer antenna for AM and shorter for FM}}
\]