What does it mean when a bank is FDIC insured?

Question

A. It has insurance on the building
B. It has insurance on its investments
C. It guarantees that you won't lose all of your money
D. It is one of the top 100 banks in the world

Answer 1

C. It guarantees that you won't lose all of your money.

FDIC insurance protects depositors by covering their deposits in the event that an FDIC-insured bank fails, up to the insurance limit (which is $250,000 per depositor, per insured bank for each account ownership category).