The correct answer is:
Federal government, states, and municipalities.
Bund, Länder und Kommunen.
Independent study resource, not a BAMF website. Translations are study aids; the exam is in German.
Quick explanation
Today Germany is divided into the federation, the states and the municipalities.
Why is this correct?
These are the three levels of the state: the country as a whole, the 16 federal states and the towns, municipalities and districts.
Background
Germany has a three-level structure. The federation is responsible for matters that concern the whole country, such as foreign policy, defence and currency. The 16 states deal with, for example, schools, the police and universities. The municipalities – towns, municipalities and districts – handle local matters such as nurseries, waste collection or citizens’ offices. The Basic Law guarantees municipalities the right to self-government (Article 28).
Why are the other answers wrong?
There were four occupation zones after the Second World War, from 1945 to 1949. There was an eastern and a western state (GDR and Federal Republic) from 1949 to 1990. Cantons exist in Switzerland, not in Germany.
Memory tip
Three levels: federation – states – municipalities.
Legal basis: Art. 20 Basic Law (GG) ↗, Art. 28 Basic Law (GG) ↗
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