What the debt-to-income ratio measures — monthly debt payments divided by gross monthly income

What a dividend yield measures — annual dividend divided by share price

Dividend yield measures the percentage of annual dividend relative to the current share price

What the Sharpe ratio measures — excess return per unit of risk: (R - Rf) / σ

Sharpe ratio: Excess return per standard deviation of portfolio returns

What earnings per share (EPS) measures — net income divided by shares outstanding

EPS measures net income per outstanding share

What the yield curve shows — interest rates across different bond maturities

The yield curve illustrates the relationship between bond yields and their maturities

What fractional reserve banking means — banks lend out most of their deposits

Fractional reserve banking allows banks to lend out a majority of their deposits while maintaining a reserve ratio

What GDP measures — total value of goods and services produced in a country in a year

GDP measures the total monetary value of goods and services produced within a country's borders annually