In a Federal democracy, whether parliamentary or presidential, the country is divided into regions which retain substantial powers of self government, while the federal government manages non-local matters such as defense, customs and Immigration, currency and other matters. These regions are often called States or Provinces, select their own legislatures and chief executives, and exercise their own police powers wihtin their borders. The division of specific powers between the federal and regional governments is different in each country and is often a matter of contention.
The alternative is a unitary democracy, where the central national government appoints administrators for designated regions. Most governing power resides in the central government, which often exercises police powers at both national and local levels, and manages defense, immigration, currency, education, and other services from national Ministries.
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Parliamentary is the British political system. Presidential is the American political system.
A: Only federal courts handle cases between citizens of different states
In a congressional system the President holds a lot of power, hence the name executive branch. In a parliamentary system the power is spread wider out and one person does not have absolute power. In a parliamentary system there is a wider representation of people, more representatives, and many different positions.
Federal a national budget with funds to support the military, and federal programs. The state budget is only for that state.
Federal districts are a type of administratiie division of a federation, under the direct control of a federal government. A state, on the other hand, is a political entity that shares sovereignty with a federal government.