How is security provided to depositors in the modern banking system?

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Deposit insurance is the most common way that security is provided to depositors in the modern banking system. Deposit insurance is a government-backed guarantee that protects depositors from losing their savings in the event that their bank fails. The Federal Deposit Insurance Corporation (FDIC) is the primary deposit insurance agency in the United States and insures deposits up to $250,000 per depositor, per insured bank. This provides a level of security for depositors and helps to maintain confidence in the banking system.

How Is Security Provided to Depositors in the Modern Banking