Final answer:
In a federal system, there are two main levels of government: the federal or national government and the subnational or state governments, both of which are autonomous and independently elected.
Step-by-step explanation:
In a federal system, there are two levels of government. The national or federal government handles matters that affect the country as a whole, such as national defense and economic policies. Meanwhile, subnational entities, like state governments, focus on regional matters including education, health care, and public safety. Both levels of government are autonomous and elected by the people to cater to different functions. For instance, in the United States, the national matters are handled by the federal government and subnational matters are handled by the state governments. Additionally, there are local governments like counties and cities which manage more localized affairs.