Federal Deposit Insurance Corporation
Provides deposit insurance to depositors in US banks
Real World Example
The Federal Deposit Insurance Corporation (FDIC) was created in 1933 as part of President Franklin D. Roosevelt's New Deal to restore trust in the American banking system during the Great Depression. Before the FDIC, many banks failed, and people lost their life savings, which made them fearful of depositing money in banks. The FDIC provided insurance to bank deposits, meaning if a bank failed, customers would still get their money back up to a certain amount, which helped stabilize the economy. Today, the FDIC continues to protect bank deposits, giving people confidence that their money is safe in a bank. For example, if a bank were to close suddenly, your savings would be protected by the FDIC, ensuring you wouldn’t lose your money, which helps maintain trust in the banking system.
