Definition: This was a federally sponsored corporation which insures deposits in national banks and certain other qualifying financial institutions up to a stated amount.

Federal Deposit Insurance Corporation (FDIC).

Explanation:

The Federal Deposit Insurance Corporation (FDIC) is a United States federally sponsored corporation which insures deposits in national banks and certain other qualifying financial institutions up to US$250,000.

It was created by the 1933 Banking Act, enacted during the Great Depression. The insurance limit was initially US$2,500 per ownership category, but this has been increased several times over the years and is currently $250,000 per ownership category.

It is primarily funded by member banks' insurance dues and has a US$100 billion line of credit with the United States Department of the Treasury.

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