The correct statement about the Federal-State balance is c. The only kinds of cases federal courts are authorized to deal with have strong federal connections.
The courts in the states handle all state matters, including violations of criminal laws. The Federal courts' jurisdiction is limited to cases affecting the US government, Constitution, or federal laws.
Also, cases between an individual from one state and another individual from another state, between states, and between a state and the federal government are handled by Federal courts.
Thus, the Federal-State balance specifies a federal system with the federating units exercising jurisdiction in their domains.
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