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Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 9 The Real Economy in the Long Run Chapter 26 of 36 Saving, Investment, and the Financial System Section 8 of 25 … The financial system consists of various financial institutions that coordinate money flow between savers and borrowers. Financial institutions are grouped into two categories 1 · financial markets, direct finance, including the bond market and the stock market 2 · financial intermediaries, indirect finance: including banks and mutual funds … The two most important financial markets are A · the bond market B · the stock market … B · The stock market - continued When reviewing the stock of any public corporation, you should focus on three numbers: price, dividend, price-earnings ratio. These numbers are widely reported on the internet. Figure A is data for Apple Inc. as of September 7, 2018 (180907) · $223.10 is the stock price on this date · 1.31% is current annual total dividend payout to...