A system that guarantees that depositors will not lose money even if the bank goes bankrupt is known as

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Deposit insurance is a system where a government agency guarantees that depositors will not lose their money even if the bank goes bankrupt. In the United States, this is provided by the Federal Deposit Insurance Corporation (FDIC), which insures deposits up to $250,000. This encourages people to use banks and helps to maintain confidence in the banking system.

A System That Guarantees That Depositors Will Not Lose Money