Which of the following is considered a reserved power of the states?

The correct answer is the establishment of local governments, which is a reserved power of the states. Reserved powers are those powers that are not specifically granted to the federal government by the Constitution and are instead reserved for the states. Establishing local governments allows states to maintain control over their own political and administrative structures, ensuring that local needs and preferences can be directly addressed.

In contrast, declaring war and regulating foreign trade are powers exclusively assigned to the federal government. The Constitution specifically grants Congress the authority to declare war and regulate commerce with foreign nations, illustrating the delineation of powers between state and federal levels. Coining money is also a power reserved for the federal government, as only the national government has the authority to issue currency and regulate the value thereof. This clear division of powers helps to maintain a balance between state and federal authority within the framework of federalism.