Finance Commissions in India are set up from time to time to facilitate the transfer of economic resources from the central government to the state governments. These commissions play a crucial role in determining the distribution of funds between the center and the states, ensuring that each state has adequate financial resources to carry out its functions and implement development programs.

Option 1 - This option is incorrect as the main function of Finance Commissions is not to lay down financial policies of the government. Finance Commissions primarily focus on the allocation and distribution of funds, rather than policy-making.

Option 2 - This option is incorrect as the role of Finance Commissions is not specifically to create a satisfactory tax structure for the economic development of the country. While they do consider tax structure and its impact on the states, their primary objective is the transfer of resources between the center and the states.

Option 3 - This option is incorrect as Finance Commissions are not directly responsible for promoting foreign trade. Their main role is to ensure the equitable distribution of financial resources within the country.

The correct answer is Option 4 - Finance Commissions are established to facilitate the transfer of economic resources from the central government to the state governments.