(a) Four traditional functions of a commercial bank are:

• Accepting deposits from customers for safekeeping and interest earnings.
• Granting loans and advances to borrowers for productive purposes.
• Providing payment and settlement services, such as cheques and electronic transfers.
• Offering safe custody for valuables and foreign exchange services.

(b) Two effects of bank rate changes are:

• An increase in bank rate raises borrowing costs, potentially reducing money supply and curbing inflation.
• A decrease encourages lending, stimulating economic activity and investment.

(c) The main functions of non-bank financial institutions are to provide specialized financial services like insurance, leasing, or microfinance, mobilizing savings outside traditional banking, and offering credit to underserved sectors without accepting demand deposits.

(d) Assuming the reserve requirement is 10% (as it’s cut off in the question, but standard in such problems; in Ghana, BoG sets it around 8-10% post-2022):

i) Bank’s cash ratio = (Reserves / Debt Liabilities) × 100 = (GHC40,000 / GHC100,000) × 100 = 40%.

ii) Required reserves = Reserve Requirement × Debt Liabilities = 10% × GHC100,000 = GHC10,000.

In Ghanaian context, BoG’s Liquidity Risk Management Guidelines enforce reserve ratios for stability, as seen in the 2017-2019 cleanup where low ratios led to collapses like UT Bank.