Which term best describes short-term loans granted to corporations or governments?

The term that best describes short-term loans granted to corporations or governments is "money market instruments." Money market instruments are highly liquid and include various types of short-term borrowing, typically maturing in one year or less. They are often used by entities to meet short-term funding needs, such as financing operating expenses or managing liquidity.

Money market instruments include Treasury bills, commercial paper, and certificates of deposit. These instruments are generally considered to be low-risk investments, making them suitable for corporations and governments seeking immediate funding or cash flow management.

In contrast, bonds and debentures are typically longer-term debt securities issued to finance long-term investments. Equities represent ownership in a company and are not classified as loans. Therefore, the focus on short-term financing is what distinguishes money market instruments as the correct answer in this scenario.