What is yield in economics?
Q: What is yield in economics?
A: Yield is how much money somebody is paid each year for leaving his or her money invested somewhere.
Q: Is yield like a corporate dividend?
A: Unlike a corporate dividend, yield is fairly certain unless there is a bankruptcy.
Q: Does yield differ because of inflation?
A: Yields can be different because of inflation.
Q: What are the order of the risks from the least risky to the most risky instruments?
A: The least risky instruments like treasury bonds yield the least, then safe and "guaranteed" instruments like long-term deposits, then overnight deposits, and so on to the various municipal bond and corporate bonds.
Q: What are extremely risky instruments with high yield called?
A: Extremely risky instruments with high yield are usually called junk bonds.
Q: How much money does someone usually know they are going to make from their yield?
A: Somebody usually knows how much money they are going to make from their yield ahead of time.
Q: Is yield risk-free?
A: Yield is not completely risk-free, but it is fairly certain.
