2. In the US Federal System, what is the Federal government responsible for?

Only the federal government can regulate interstate and foreign commerce, declare war and set taxing, spending and other national policies.

Explanation:

this means that germany had to pay the allied countries. reparations are/is essentially payment for something that they have done wrong, so after ww1, germany was forced to pay reparations so they could replenish the allied countries resources' that they had lost during the war.