What does FDIC stand for?

The correct answer is based on the official name of the organization, which is the Federal Deposit Insurance Corporation. This agency was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. Its primary purpose is to protect depositors by providing insurance up to a certain limit for deposits made in member banks. In doing so, it helps maintain public confidence in the U.S. financial system, ensuring that consumers' savings are safeguarded against bank failures.

The other options do not accurately represent the name or function of the agency, as they either misstate the organization's focus or use incorrect terminology. Understanding the role and full name of the FDIC is essential for recognizing its significance in financial regulation and consumer protection in the banking sector.