In a Federal system, power is shared between the levels of government ( Federal,State,Local ) .
There are three basic systems of government: Unitary, Confederal & Federal.
Collecting taxes,providing for defense, borrowing money on credit, regulating commerce, creating a currency, establishing post offices & roads, granting patents, creating lower courts, declaring war are some of the common characteristics of Federal systems of government.
Leading examples of the federal systems are USA,India,Canada,Brazil, Germany, Switzerland, Argentina & Australia.
