Final answer:
In 2008, the deposit insurance amount was increased to $250,000 per depositor by the FDIC, in an effort to enhance bank stability and depositor confidence during the financial crisis.
Step-by-step explanation:
The deposit insurance amount was increased to $250,000 per depositor in 2008. This increase was part of the measures taken to provide greater security to bank customers and to prevent bank runs during the financial crisis. The Federal Deposit Insurance Corporation (FDIC), which is responsible for the deposit insurance system in the United States, raised the insurance coverage from its previous amount of $100,000.The FDIC insures deposits at around 5,898 banks as of 2017, and this insurance is crucial as it guarantees that depositors will receive up to $250,000 of their money in each account, in case a bank fails. No depositor has lost any of their insured deposits since deposit insurance was enacted in the 1930s, and this system has effectively prevented insured bank runs.