What is an acronym?

An acronym is indeed a word that is formed from the initial letters of a series of words and is pronounced as a separate word. This formation allows for easier communication and often creates a term that is more concise and memorable. For instance, "NASA," which stands for the National Aeronautics and Space Administration, clearly exemplifies this definition, as it simplifies a longer name into a singular term that can be used in conversation and writing.

The other options describe different concepts within literary and linguistic terms. The exaggeration for emphasis refers to hyperbole, a different figure of speech. Rhyme schemes pertain to the pattern of rhyming words at the end of lines in poetry, and a foil character highlights specific traits in another character by contrast. While these concepts are relevant in literature, they do not relate to the formation of acronyms. This distinction clarifies why the first choice accurately defines an acronym.