Final answer:
The Federal Reserve System includes the Board of Governors, the Federal Open Market Committee, and the 12 regional Federal Reserve Banks. The FOMC sets monetary policy, and the Federal Reserve supervises member banks and maintains the payment system.
Step-by-step explanation:
The entities that constitute the Federal Reserve System are the Board of Governors, the Federal Open Market Committee (FOMC), and the 12 regional Federal Reserve Banks. Therefore, the correct answer to the question is 4) All of the above. The main role of the FOMC is to set monetary policy, such as interest rate levels and macroeconomic policy. The Federal Reserve plays a crucial role in supervising State Member Banks, as well as maintaining the national payment system and enforcing consumer protection laws. Additionally, the Federal Reserve System participates in the discount rate and reserve requirements setting, and oversees open market operations, and by using these tools, it influences the federal funds rate, which is pivotal for the nation's economy.