This coin from Yehud evokes a lot of imagination, since Yehud was the kingdom that included Jerusalem. A tremendous amount of scholarship has occurred concerning the history and politics of this Persian-controlled kingdom, and properly summarizing them would take an entire book.
Jerusalem was considerably smaller back then, with an estimated 1500 people, and the rest of the small population of Yehud was mostly rural. Its area was also smaller than the previous Kingdom of Judah, but it was given some independence by the Persians and was allowed to mint its own coins, as seen here.
These were very small coins and were obviously intended for local use. Given that they imitate the Athenian owls, one can presume that their tets dominated for higher currencies. Aramaic was the principal language and is what is used for the legend on this coin.
The kingdom itself was rules by priests, one of whom minted his own coins (Hezekiah). The kingdom was predominantly Jewish, though the Jewish religion was notably different than today.