True. In a federal system, the central government is given power to act nationally, while the states are responsible for administering to local concerns. This system allows for a balance between the power of the federal government and the power of the states. The federal government is responsible for issues that affect the entire nation, such as foreign policy, defense, and taxation. The states are responsible for issues that affect their citizens, such as education, health care, and public safety. This system of shared power allows for a balance between the rights of the states and the rights of the federal government.