In this type of government, political and governmental power is held by the citizens of the country

Democracy--a democracy in its true form is a government with control of and by the people. 

There are different forms of democracy and like many forms of government the true form rarely exists in a state. The US is a democratic republic where the people have a say through representation in Congress. There is also socialist democracies in which the people have a say (often through representation) but also the government controls means of production. This form is a blend of democracy and socialism.