What agency insures deposit accounts in most banks in the U.S.?

The Federal Deposit Insurance Corporation (FDIC) is the agency responsible for insuring deposit accounts at most banks in the United States. Established in 1933 in response to the thousands of bank failures during the Great Depression, the FDIC aims to maintain public confidence in the U.S. financial system by protecting depositors' funds. Each depositor is insured up to $250,000 for each account ownership category, which provides a safety net for individuals and promotes stability in the banking system. The FDIC helps to ensure that even if a bank fails, customers will not lose their savings, thereby encouraging individuals to keep their money in banks.

In contrast, the Federal Reserve System primarily focuses on monetary policy and regulating the banking system, while the Securities and Exchange Commission oversees securities markets and protects investors. The Federal Trade Commission deals with consumer protection and antitrust laws, which are not related to the insurance of deposit accounts. Thus, the FDIC plays a unique and critical role in safeguarding depositors' funds, making it the correct choice in this context.