What is one restriction placed on members of the FDIC Board of Directors?

The correct choice highlights an important ethical standard related to the FDIC Board of Directors. Members of the board are prohibited from holding stock in any insured depository institution during their term. This restriction is designed to prevent conflicts of interest and to promote the integrity of their decision-making processes. By ensuring that board members do not have a financial stake in banks, the FDIC maintains impartiality in oversight and regulation.

This measure also reinforces public confidence in the FDIC's role as a protector of depositors and a regulator of the banking system, ensuring that board members are not influenced by personal financial interests when making decisions that affect the safety and soundness of the banking system. Overall, this restriction is crucial for maintaining the objectivity and effectiveness of the FDIC's regulatory functions.