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The Canadian Government operates as a constitutional monarchy, meaning the country recognizes a monarch as the official head of state, but the monarch's powers are limited by the constitution. It is structured as a federal system, where power is divided among federal, provincial, and territorial governments. The federal government handles national and international affairs, such as defense, foreign policy, and trade, while provincial and territorial governments manage areas such as education and healthcare. Its parliamentary system is bicameral, including the House of Commons, whose members are elected, and the Senate, whose members are appointed. The Prime Minister serves as the head of government and is typically the leader of the political party with the most seats in the House of Commons.