In the context of the proposed Financial Resolution and Deposit Insurance (FRDI) Bill, 2017 in India, what does the letter "D" stand for in the abbreviation "FRDI"?

Introduction / Context:

Abbreviations and acronyms are common in economic and financial legislation, and competitive exams often test whether you know their full forms and meanings. The Financial Resolution and Deposit Insurance (FRDI) Bill, 2017 was an important proposal relating to the resolution of financial firms and protection of depositors. This question asks what the letter "D" in the abbreviation "FRDI" stands for, which you can answer if you know the complete expansion of the term.

Given Data / Assumptions:

• The abbreviation in focus is FRDI.
• The Bill was named the Financial Resolution and Deposit Insurance Bill, 2017.
• The question specifically asks about the meaning of the letter "D".
• Options include Destruction, Demand, Deposit, and Department.

Concept / Approach:

The FRDI Bill was aimed at creating a comprehensive framework for resolving financial firms such as banks and insurance companies that are in distress, while also protecting depositors through a structured deposit insurance mechanism. The full form of FRDI is Financial Resolution and Deposit Insurance. Thus, the letter "D" in FRDI clearly stands for "Deposit". Knowing the full form directly leads you to the correct option without confusion.

Step-by-Step Solution:

Verification / Alternative check:

If you are unsure, you can verify by thinking about what kind of issues the Bill addressed. It was not about destruction, demand, or departments in a general sense, but about resolving financial stress and insuring deposits held by customers in financial institutions. Therefore, the most relevant word beginning with D is "Deposit". This matches the common phrase "deposit insurance", which appears in the title of the Bill itself. This contextual check confirms that Deposit is the correct expansion.

Why Other Options Are Wrong:

Option A, Destruction, does not appear in the name of the Bill and does not accurately describe the objective of financial resolution and depositor protection. Option B, Demand, may appear in other financial contexts such as demand deposits, but it is not part of the title of the FRDI Bill. Option D, Department, is a general administrative term and has no place in the official name of the Bill. Only Deposit fits with the known expansion Financial Resolution and Deposit Insurance.

Common Pitfalls:

One common error is to confuse FRDI with other financial acronyms or to guess randomly from the options without recalling the full form. Another pitfall is to focus on words like demand or department because they sound financial or administrative, but these are not actually part of the expansion. To avoid such mistakes, it is helpful to memorise the full forms of key economic and legal abbreviations, especially those frequently mentioned in news and exam oriented materials.

Final Answer:

In the abbreviation "FRDI", the letter "D" stands for Deposit as in Financial Resolution and Deposit Insurance.