What does FDIC stand for?

The FDIC stands for the Federal Deposit Insurance Corporation, a vital U.S. government agency established in 1933. Its primary purpose is to protect depositors by providing insurance to deposits made at member banks, thereby maintaining public confidence in the nation's financial system. This means that in the event of a bank failure, depositor funds are protected up to the insurance limit, currently set at $250,000 per depositor, per insured bank, for each account ownership category.

Understanding this aspect is important for individuals and businesses alike, as it helps to secure savings and promote overall financial stability. The other choices do not accurately represent the agency's official name or function, thus not conveying the correct meaning associated with FDIC.