Finance 1

HIGHER SECONDARY CERTIFICATE 2028 Business Studies Group • English Version • Dhaka Education Board Finance, Banking and Insurance First Paper Subject Code 292 Complete Chapter Notes Full syllabus • Labelled diagrams • Board style questions Prepared by Md Ahbab Hamid Khan ahbab.dev September 6, 2026

HSC 2028 • Finance, Banking and Insurance First Paper • Code 292 1 Contents 1 Introduction to Finance 6 1.1 What this chapter is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1.2 How the board tests this paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1.3 Key terms of the chapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1.4 What finance really means . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1.5 The types of finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1.6 Business finance and the form of the business . . . . . . . . . . . . . . . . . . . . . . . 8 1.7 How the idea of finance grew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1.8 The three financial decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1.9 The goal of financial management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1.10 Wealth in numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1.11 The agency problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

HSC 2028 • Finance, Banking and Insurance First Paper • Code 292 2 2.17 Board exam traps in this chapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 2.18 Cheat Sheet for Chapter 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 2.19 Appendix A: ten multiple choice questions . . . . . . . . . . . . . . . . . . . . . . . . . 29 2.20 Appendix B: three creative question stems with model answers . . . . . . . . . . . . . 30 2.21 Appendix C: quick recap before you sleep . . . . . . . . . . . . . . . . . . . . . . . . . 31 3 Time Value of Money 32 3.1 How the board tests this chapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 3.2 Key terms of this chapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 3.3 What time value of money means . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 3.4 Why money has time value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 3.5 The time line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 3.6 Simple interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 3.7 Comp