The set of complex numbers encompasses real, imaginary, and combinations of the two, so it is the largest set that you are likely to encounter. There are other number systems, such as quaternion imaginaries, which you may never encounter, so I only mention it here and you can look it up for more info if you're interested.
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A square root is not a number system. Square roots of non-negative numbers may be rational or irrational, but they all belong to the set of real numbers. The square roots of negative numbers do not. To include them, the number system needs to be extended to the complex numbers.
Graphically the difference is quite clear: the real numbers can be put on a line, the so-called number-line; while complex numbers are represented as points on a plane. A complex number is made up of two parts, like a vector in two dimensions.
They are used for counting things. Also, they form the basis for the rest of the number system: the integers, rational numbers, irrational numbers, complex numbers, quaternioins.
All real numbers can be represented in the decimal system. Complex numbers can be represented by a pair of numbers in the decimal system.
Among other things, complex numbers play an important role:* In electrical circuits - quantities in AC circuits are described by complex numbers. * In quantum mechanics - the "probability amplitude" is an important concept in quantum mechanics, and it is described by a complex number. * In art - for example, the Mandelbrot set is based on calculations with complex numbers.