Final answer:
The FDIC insures up to $250,000 per person in an individual account at any one institution, under the deposit insurance program established in the 1930s to ensure the safety of bank deposits and prevent bank runs. The correct answer is option b.
Step-by-step explanation:
The Federal Deposit Insurance Corporation (FDIC) plays a crucial role in maintaining the stability and trust in the United States banking system by providing deposit insurance. Banks are legally mandated to pay a small portion of their deposits to the FDIC as insurance premiums, which are based on the bank's level of deposits and adjusted according to the riskiness of the bank's financial situation.
Since its inception in the 1930s, the FDIC's deposit insurance coverage has seen various increases, notably during the financial crisis of 2008, when it rose from $100,000 to $250,000. This increased coverage has continued and is still in place today. Bank examiners from the FDIC regularly assess the financial health of banks, examining assets and liabilities to appraise the level of risk the banks carry. The assurance provided by the FDIC's deposit insurance has meant that no depositor has lost any insured deposits since the deposit insurance system was put in place.
In summary, to respond to the question regarding the FDIC coverage, the FDIC currently insures against loss of up to $250,000 per person in an individual account at any one institution. Therefore, the correct option is b) $250,000.