You can do this just as easily, and in a format that's going to be natively supported by the OS (as well as recoverable by an administrator in the event of a DR), so NTFS permissions will meet your requirement precisely. I don't think you specifically want to use a password, I think instead that you want to have a specific folder that has access restricted to certain selected individuals. Now, consider the objective you want to achieve here. Password protection of files and folders is NOT a feature of the NTFS filesystem. The misconception generally comes from the fact that it's possible to password-"protect" a Word doc but what's actually going on here is that Word itself is providing the password-"protection". This is a common enough question (I'm guaranteed to get it from users at least once per quarter myself) and the short answer is that - without some external tool - you can't.
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