The correct answer is:
the federal states
die Bundesländer
Independent study resource, not a BAMF website. Translations are study aids; the exam is in German.
Quick explanation
The federal states decide school policy.
Why is this correct?
Education is a matter for the states in Germany; that is why they have their own school laws and curricula.
Background
In Germany, the federal states are responsible for schools. This is called the cultural sovereignty of the states. That is why each state has its own school laws, curricula, types of schools and holiday dates. To keep qualifications comparable, the states coordinate in the Standing Conference of Ministers of Education (Kultusministerkonferenz).
Why are the other answers wrong?
Teachers teach according to the states’ rules but do not make school policy. The Federal Ministry for Family Affairs is responsible for families, senior citizens, women and youth, not schools. Universities train teachers but do not decide school policy.
Memory tip
Schools are a matter for the states – that is why summer holidays differ everywhere.
Legal basis: Art. 30 Basic Law (GG) ↗
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