Final answer:
A 'Bank run' is the correct term for when depositors withdraw their money for fear of losing it due to the bank's potential insolvency.
Step-by-step explanation:
The term that is best defined as a situation in which depositors race to the bank to withdraw their deposits for fear that otherwise those deposits would be lost is A. Bank run. A bank run occurs when there are rumors, which could be true or false, suggesting that a bank is at financial risk of having negative net worth. This prompts depositors to withdraw their money urgently to protect it from potential loss. Even unfounded rumors can trigger a bank run, leading to a solvent bank losing its deposits and potentially being forced to close. A historical example of this scenario is depicted in the movie It's a Wonderful Life, where a bank manager faces a panicked group of depositors during a bank run.