I think your question if if they can "co-exist", correct?
They can and they have coexisted many times in the past, and even today. A monarchy with teocracy happens when there is a ruler (monarch ) who has an absolute or near-absolute power and claims to derive this power from God.
A historical example is ancient Egypt and a current example is Vatican City
Culture does influence one's lives in many ways. It does come from the people before us usually our ancestors and this then is being pass on from generation to generation thus one cannot escape culture as it is already part of people's lives.
First question: the king or queen sometimes has absolute power: for example, this is the case in Bahrain, but not in Norway, even though both have monarchs.
Second question: it's the federal system: in this system the states have a level of autonomy and can decide on the local issues.
For democracy to take hold in the modern world, people had to take responsibility for ruling themselves. The believe in individual potential<span>and the importance of creative effort that emerged during the RENAISSANCE helped make this possible.</span>