What does FDIC stand for?

The correct answer, C, stands for the Federal Deposit Insurance Corporation. This is a crucial entity in the United States that was established in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. The primary function of the FDIC is to provide insurance for bank deposits, ensuring that depositors do not lose their savings in the event of a bank failure. It promotes public confidence in the banking system by offering protection for individual depositors' funds up to a certain limit.

Each of the incorrect options reflects a misunderstanding or misrepresentation of the corporation's name and purpose. For instance, the first option suggests a focus on investment rather than insurance, which is inaccurate as the FDIC is specifically an insurance agency. The second option incorrectly combines terms related to finance and insurance but fails to accurately represent the FDIC’s role in protecting depositors. The fourth option deviates entirely from the FDIC's mission by implying a regulatory body focused on insurance and compliance, rather than emphasizing deposit insurance for bank customers. Thus, C accurately reflects the organization’s name and functions, serving as a pillar of financial stability in the banking sector.