OMVIC Practice Test 2025 - Free OMVIC Practice Questions and Study Guide

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Deposits over what amount must be kept in a trust account?

$1,000

$10,000

The requirement for deposits to be kept in a trust account is established to ensure the proper handling of client funds by registrants within the automotive industry. In Ontario, the law mandates that any deposit amount over $10,000 must be placed in a trust account. This regulation is in place to protect consumers and ensure that large sums of money are managed responsibly, safeguarding them against misappropriation or misuse by dealership employees. Keeping substantial deposits in trust accounts creates a level of transparency and accountability in financial transactions, as these accounts are subject to specific regulations and are monitored closely. This practice helps to maintain trust between consumers and businesses, ensuring that money is only used for its intended purpose until the contract terms are fulfilled.

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$5,000

No amount of deposit needs to be placed in a trust account

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