What does the acronym FDIC stand for?

The acronym FDIC stands for the Federal Deposit Insurance Corporation. This government agency was created in response to the thousands of bank failures that occurred in the 1920s and 1930s, particularly during the Great Depression. The primary goal of the FDIC is to maintain public confidence in the U.S. financial system by providing insurance to depositors. This insurance protects depositors against the loss of their insured deposits if an FDIC-insured bank or savings institution fails.

When individuals deposit money in an FDIC-member bank, their deposits are insured up to a certain limit, providing a safety net. As of 2023, this limit is $250,000 per depositor, per insured bank, for each account ownership category. This protection encourages people to keep their money in banks rather than hoarding cash at home, thus supporting the overall stability of the financial system.

The other options do not accurately reflect the role or name of the FDIC, making the choice of the Federal Deposit Insurance Corporation the only correct answer.