Final answer:
Depositor's funds in banks are insured by deposit insurance in the United States, and the banks pay the insurance premiums to the Federal Deposit Insurance Corporation (FDIC).
Step-by-step explanation:
In a program of deposit insurance as it is operated in the United States, what is being insured are the depositor's funds in the banks, specifically, this insurance guarantees the safety of deposits in member banks, up to a certain limit per depositor, per bank. The entities that pay for the insurance premiums are the banks themselves. The Federal Deposit Insurance Corporation (FDIC) is the institution responsible for managing this insurance program. Banks pay a premium to the FDIC, which is determined based on the bank's deposits and adjusted for the bank's risk profile. For instance, a bank perceived as safe and financially sound might pay a lower premium, whereas a riskier bank would pay a higher premium.