What does every German federal state have?

EDITORIAL LEARNING AID

Why is this answer correct?

Every federal state has its own government and its own parliament and may decide for itself in many areas, for example education. Foreign policy, currency and the armed forces, by contrast, are matters for the federation.

Each state has its own government — foreign policy is federal.

This translation and explanation are editorial learning aids. The official German wording and answer key govern the examination.