Final answer:
The main function of the Federal Open Market Committee is to set monetary policy to promote economic growth, utilizing tools such as open market operations. They also regulate State Member Banks and have other roles including consumer protection and financial regulation administration.
Step-by-step explanation:
The main function of the Federal Open Market Committee (FOMC) is to set monetary policy with the goal of promoting economic growth. The FOMC is comprised of the seven members of the Federal Reserve's Board of Governors and five regional Federal Reserve Bank presidents who serve on a rotating basis, with the New York Bank president serving as a permanent voting member. They use tools such as open market operations, which have been the most commonly used tool of monetary policy, adjusting reserve requirements, and setting the discount rate to manage interest rates and credit conditions. This in turn influences the level of economic activity and helps to stabilize the nation's monetary system, consistent with the delegates’ duties from Congress to the Fed as per the 1913 legislation based on the U.S. Constitution's Article I, Section 8.
In handling State Member Banks, the Federal Reserve's role involves regulation to ensure stability and compliance with banking laws. Two other roles of the Federal Reserve System are to regulate banks to protect consumers and to oversee the administration of financial regulations.