Which of the following is an example of a reserved power?

Reserved powers refer to those powers that are not specifically granted to the federal government by the Constitution and are therefore reserved for the states or the people. The establishment of local governments is a prime example of a reserved power. It is the responsibility of state governments to create and manage local entities such as counties, municipalities, and towns, allowing them to address issues specific to their communities, such as zoning laws and local ordinances.

The other options listed pertain to powers that are primarily held by the federal government. Declaring war is a power granted to Congress, and regulating foreign trade is also under federal jurisdiction. Similarly, the authority to print money is a power reserved for the federal government through the U.S. Treasury and the Federal Reserve System. Consequently, establishing local governments remains firmly within the realm of state authority, exemplifying the concept of reserved powers.