The union of independent sovereign states is a federation .
A service that only the Federal government can provide is the ability to mint money in the country.This is due to the fact that this single authority is bestowed upon the country by the constitution. Through the central bank of the country, the federal government mints money for the federation.A federal system of government exists when power is shared between a central, federal body, and smaller entities such as states.
The federal government has power over laws of the states and is established by Article 6 of the U.S. Constitution. The federal government has three branches: the legislative, executive, and judiciary, all are within its powers to exercise.
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The judicial branch of the government interprets laws. When cases are brought to the Supreme Court (or any other lower civil court in the United States), it is the Court's (judiciary's) job to interpret the relevant law in the case. The Court might decide that the law is being unfairly executed or that the law was unconstitutional to begin with. Whatever the Court decides, this becomes the precedent for how the law must be interpreted. Since the Supreme Court is the highest court in the land, it can determine how laws must be interpreted for the entire country.
