Final answer:
The acronym "FDIC" stands for the Federal Deposit Insurance Corporation, which insures bank deposits up to $250,000 and is involved in bank supervision alongside other regulatory agencies.
Step-by-step explanation:
The acronym "FDIC" stands for the Federal Deposit Insurance Corporation. It is a U.S. government agency that protects bank depositors by insuring deposits up to $250,000 per depositor, per insured bank, for each account ownership category. The FDIC was established by the Glass-Steagal Banking Act during the Great Depression to increase public confidence and stability in the banking system. Banks pay an insurance premium to the FDIC, which is based on the bank's level of deposits and adjusted for the riskiness of the bank's financial situation.
In addition to deposit insurance, the FDIC, along with other regulatory agencies such as the Office of the Comptroller of the Currency (OCC) and the National Credit Union Administration (NCUA), also plays a role in the supervision of financial institutions to ensure they have positive net worth and are not taking on too much risk.