<<–2/”>a >a href=”https://exam.pscnotes.com/federalism/”>Federalism is a System of Government in which the same territory is controlled by two levels of government. Generally, an overarching national government governs issues that affect the entire country, and smaller subdivisions govern issues of local concern. Both the national government and the smaller political subdivisions have the power to make laws and both have a certain level of autonomy from each other.
A federation is traditionally constituted when two or more independent neighboring states forge a Union for defined purposes of common interest by divesting themselves of a measure of Sovereignty which is vested with the federal government. “The urge for union comes from the need for collective security against aggression and economic co-ordination for protection and expansion of Trade and Commerce. The federation is given only enumerated powers, the sovereignty of the states in the Union remains otherwise unimpaired”.
“A Federation in USA is of this type. Alternatively, a federation is formed when a sovereign authority creates autonomous units and combines them in a Union.” Once constituted, the national and state governments possess co-ordinate authority derived from the several constitutions and enjoy supremacy in their respective spheres of authority and jurisdiction. Canadian federation belongs to this category. However, the differences between the two lie in the degree and extent of emphasis on unitary features.
Characteristic Features of Federalism are:-
(i) Supremacy of Constitution:-Supremacy of the Constitution is a doctrine where by the Constitution is the supreme law of the land and all the State organs including Parliament and State Legislatures are bound by it. They must act within the limits laid down by the Constitution. They owe their existence and powers to the Constitution and, therefore, their every action must have its support in the Constitution.
(ii) The distribution among bodies with limited and co-ordinate authority, of different powers of government;
(iii) The authority of the courts as interpreters of the Constitution;
(iv) Double Citizenship-2/”>Citizenship is another characteristic of some of the Federation.
A unitary system on the other hand has the highest degree of centralization. In a unitary state, the central government holds all the power. Lower-level governments, if they exist at all, do nothing but implement the policies of the national government. In a purely unitary state, the same set of laws applies throughout the nation, without variation. Unitary states create national policy, which is then applied uniformly. This uniformity sometimes serves as an advantage because people and businesses know exactly what to expect from the laws, regardless of geographical location. At the same time, to maintain its uniformity, a unitary government must overlook local differences that might call for different rules or policies.
Example: Most absolute monarchies and tyrannies operate under unitary systems. But democratic unitary states exist as well. In France, for example, the central government makes virtually all of the decisions.
The Indian Federation is a federation of its own type. It does not fall into either of the two conventional categories. The British provinces though largely autonomous after the attainment of independence in 1947 did not possess the attributes of sovereignty. Their position was just like Canadian provinces. They could not therefore form a compact of their own for common purposes of supra-provincial importance.
Moreover, the Union was not brought into existence by the British before they relinquished power. The representatives of the Indian people assembled in a Constituent Assembly and decided on the structure of the Union. Hence, they provided for the distribution of authority and functions between the national and regional governments.
The Indian Constitution, no doubt, fulfills some conditions of a federation, but it leans towards a strong Centre, it is a stable union of states and provinces (now termed as states) which have neither lost their entities nor claim complete autonomy. Evidently it does not violate the essentials of a federal Polity. However, our federal system has been adjusted to the needs of our country, which has been falling prey to the foreign invaders on account of it being a house divided against itself.
Unitary nature of Indian constitution:
On the other hand the Indian constitution also incorporates many features of a unitary state. The Unitary Features of Indian Constitution is given below:
- It provides for Single Citizenship an integrated judiciary, dominance of Bureaucracy, uniformity at the top levels, and above all gives greater powers to the Union Government.
- The Indian constitution sets up a very powerful union Government. A review of the Division of Powers in the Indian constitution clearly shows strong bias in favor of the union Government and several limitations on the autonomy of state Governments. For example, during the proclamation of a national emergency the union government can legislate on the subjects in the state list and can control the executive powers of the State Government.
- It is not only during an emergency that the Indian constitution becomes unitary in character. Even in its normal working, the union Parliament can reorganize the states or alter the boundaries by a Simple Majority vote, even without the Consent of the legislature of the state so affected.
- In case there is a conflict between a union law and a state law, the union law will prevail.
- The state governors are appointed by the President.
- State governments don’t have separate constitution of their own. They derive their powers from the same constitution, i.e., the Constitution of India.
- There is a single judicial system in India. The highest judicial forum is The Supreme Court. The high courts and other lower courts are sub-ordinate to Supreme Court.
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Federal Dynamics is a leading provider of enterprise software solutions to the United States government. The company’s products are used by a wide range of agencies, including the Department of Defense, the Department of Homeland Security, and the Department of Justice. Federal Dynamics’ software is used to manage all aspects of an organization’s operations, including finance, human resources, supply chain management, and customer relationship management.
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What is the Federal Reserve System?
The Federal Reserve System is the central bank of the United States. It was created by the Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system. The Federal Reserve System conducts the nation’s Monetary Policy to promote maximum EMPLOYMENT, stable prices, and moderate long-term interest rates in the U.S. economy. It also supervises and regulates banks and other important financial institutions to ensure the safety and soundness of the nation’s Banking and financial system and to protect the credit rights of consumers.
What are the three parts of the Federal Reserve System?
The Federal Reserve System is composed of three parts:
- The Board of Governors in Washington, D.C.
- The Federal Reserve Banks in cities throughout the nation
- The Federal Open Market Committee (FOMC)
The Board of Governors is made up of seven members who are appointed by the President and confirmed by the Senate. The Board of Governors is responsible for setting monetary policy, supervising and regulating banks, and overseeing the Federal Reserve System.
The Federal Reserve Banks are located in cities throughout the nation. Each Federal Reserve Bank is responsible for implementing monetary policy, supervising and regulating banks, and providing financial Services to depository institutions and the U.S. government.
The Federal Open Market Committee (FOMC) is made up of the seven members of the Board of Governors and five of the 12 Reserve Bank presidents. The FOMC is responsible for setting monetary policy, which is the process of managing the Money-supply-2/”>Money Supply and interest rates in the economy.
What is the Federal Reserve’s role in the financial system?
The Federal Reserve System plays a vital role in the financial system by providing liquidity, stability, and efficiency. The Federal Reserve provides liquidity to the financial system by buying and selling Government Securities. This helps to keep interest rates low and makes it easier for banks to lend money. The Federal Reserve also provides stability to the financial system by acting as a lender of last resort. This means that the Federal Reserve will lend money to banks that are in financial difficulty. This helps to prevent a run on the banks and to keep the financial system stable. The Federal Reserve also provides efficiency to the financial system by operating the nation’s payments system. This system allows for the transfer of money between banks and other financial institutions.
What are the Federal Reserve’s tools for implementing monetary policy?
The Federal Reserve System has three tools for implementing monetary policy: open market operations, reserve requirements, and the DISCOUNT rate.
Open market operations are the buying and selling of government securities by the Federal Reserve. When the Federal Reserve buys government securities, it injects money into the economy. When the Federal Reserve sells government securities, it takes money out of the economy.
Reserve requirements are the amount of money that banks are required to hold in reserve. When the Federal Reserve raises reserve requirements, it makes it more difficult for banks to lend money. When the Federal Reserve lowers reserve requirements, it makes it easier for banks to lend money.
The discount rate is the interest rate that the Federal Reserve charges banks for loans. When the Federal Reserve raises the discount rate, it makes it more expensive for banks to borrow money. When the Federal Reserve lowers the discount rate, it makes it cheaper for banks to borrow money.
What is the Federal Reserve’s role in the financial crisis of 2008?
The Federal Reserve played a critical role in the financial crisis of 2008. The Federal Reserve took a number of actions to stabilize the financial system, including:
- Providing liquidity to the financial system by buying government securities and other assets
- Lending money to banks and other financial institutions
- Insuring the deposits of banks
- Providing guarantees to the debt of Fannie Mae and Freddie Mac
The Federal Reserve’s actions helped to stabilize the financial system and to prevent a collapse of the global economy.
What is the Federal Reserve’s role in the COVID-19 pandemic?
The Federal Reserve played a critical role in the COVID-19 pandemic. The Federal Reserve took a number of actions to support the economy, including:
- Providing liquidity to the financial system by buying government securities and other assets
- Lending money to banks and other financial institutions
- Lowering interest rates to near zero
- Launching a number of programs to support businesses and consumers
The Federal Reserve’s actions helped to support the economy and to prevent a deep Recession.
Sure. Here are some MCQs on the topics of Federalism, Separation of Powers, and Checks and Balances:
Which of the following is not a principle of federalism?
(A) The federal government has certain powers that are exclusive to it.
(B) The states have certain powers that are exclusive to them.
(C) The federal government and the states share certain powers.
(D) The federal government and the states have no powers that are shared.Which of the following is not a power of the federal government?
(A) To declare war
(B) To coin money
(C) To regulate interstate commerce
(D) To establish a national religionWhich of the following is not a power of the states?
(A) To establish a state government
(B) To conduct Elections
(C) To raise and maintain a militia
(D) To levy taxesWhich of the following is not a check on the power of the federal government?
(A) The power of the states to nullify federal laws
(B) The power of the Supreme Court to strike down federal laws
(C) The power of the President to veto federal laws
(D) The power of Congress to override a presidential vetoWhich of the following is not a check on the power of the states?
(A) The power of the federal government to preempt state laws
(B) The power of the Supreme Court to strike down state laws
(C) The power of the President to veto state laws
(D) The power of Congress to override a state vetoWhich of the following is not a principle of separation of powers?
(A) The legislative branch makes the laws.
(B) The executive branch enforces the laws.
(C) The judicial branch interprets the laws.
(D) The legislative branch can also enforce the laws.Which of the following is not a power of the legislative branch?
(A) To make laws
(B) To declare war
(C) To raise and maintain armed forces
(D) To impeach the PresidentWhich of the following is not a power of the executive branch?
(A) To enforce the laws
(B) To conduct foreign affairs
(C) To command the armed forces
(D) To declare warWhich of the following is not a power of the judicial branch?
(A) To interpret the laws
(B) To try cases
(C) To issue writs of Habeas Corpus
(D) To declare laws unconstitutionalWhich of the following is not a check on the power of the legislative branch?
(A) The President can veto laws passed by Congress.
(B) The Supreme Court can strike down laws passed by Congress.
(C) The states can nullify laws passed by Congress.
(D) The President can appoint judges to the Supreme Court.Which of the following is not a check on the power of the executive branch?
(A) Congress can impeach the President.
(B) The Supreme Court can strike down laws passed by Congress.
(C) The states can nullify laws passed by Congress.
(D) The Senate can confirm the President’s appointments.Which of the following is not a check on the power of the judicial branch?
(A) The President can appoint judges to the Supreme Court.
(B) Congress can impeach judges.
(C) The states can nullify laws passed by Congress.
(D) The President can veto laws passed by Congress.
I hope these MCQs are helpful!