Bit 2 is used to enable or disable the lower ROM area. The lower ROM area occupies memory addresses &0000-&3fff and is used to access the operating system ROM. When the lower ROM area is is enabled, reading from &0000-&3FFF will return data in the ROM. When a value is written to &0000-&3FFF, it will be written to the RAM underneath the RAM. When it is disabled, data read from &0000-&3FFF will return the data in the RAM.
Similarly, bit 3 controls enabling or disabling of the upper ROM area. The upper ROM area occupies memory addressess &C000-&FFFF and is BASIC or any expansion ROMs which may be plugged into a ROM board/box. See the document on [[Upper ROM Bank Number|upper rom selection ]] for more details. When the upper ROM area enabled, reading from &c000-&ffff, will return data in the ROM. When data is written to &c000-&FFFF, it will be written to the RAM at the same address as the ROM. When the upper ROM area is disabled, and data is read from &c000-&ffff it will be the data in the RAM.
Bit 4 controls the interrupt generation. It can be used to delay interrupts. See the document on interrupt generation for more information.