Final answer:
The type of short-term financing described is a line of credit, which provides a set amount of funds that can be borrowed and repaid over time with interest. Bonds are another form of short-term financing where borrowers agree to pay back the principal with interest at a future date.
Step-by-step explanation:
The type of short-term financing that is available to borrowers, which provides them with an amount of money they can borrow against and pay back at a certain interest rate for a certain period, is called a line of credit. This type of financing is commonly used by both consumers and businesses to meet immediate financial needs. For example, college students often use these funds to pay their college expenses, while businesses might need it to invest in a research and development project or to build a factory.
Another form of short-term financing is a bond. A bond is a financial contract whereby the borrower agrees to repay the borrowed amount plus interest over a future period of time. Bonds can be issued by firms as corporate bonds or by various levels of government, such as municipal bonds, state bonds, and Treasury bonds.