Both the states and the federal government can establish courts, charter banks, provide for public welfare, levy taxes, borrow money, and maintain Law and Order.
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Federalism
The United States Constitution provided that states and the federal government would share certain powers. These powers are called Concurrent Powers. Examples of such powers are the power to tax and borrow money
Power is specified and shared between federal and state government.
The Constitution created a federal system of government (federalism) as a compromise. Under federalism, power is shared and divided between national and state governments. Each has specific powers unto themselves while they also share certain powers. Both levels have their own agencies and officials and directly affect the people.
Check and Balance powers.