What does FDIC stand for?

The correct answer, Federal Deposit Insurance Corporation, reflects the primary role and function of the FDIC. Established in 1933 in response to the thousands of bank failures during the Great Depression, the FDIC provides deposit insurance to depositors in U.S. commercial banks and savings institutions. This insurance protects depositors from the loss of their insured deposits if an FDIC-insured bank or savings institution fails.

The FDIC also plays a vital role in promoting stability and public confidence in the nation’s financial system. By ensuring that individual depositors are protected, it helps maintain trust in the banking system, encouraging consumers to keep their money in banks rather than withdrawing it in times of financial uncertainty.

In contrast, the other options presented do not correspond to any recognized agency or function within the banking industry. They contain inaccurate descriptions or terms that are not associated with the FDIC, which could confuse the framework of financial institutions' oversight and insurance in the United States.