Which of the following is true about deposits in auto broker transactions?

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Deposits in auto broker transactions are governed by rules that protect both the buyer and the broker by ensuring funds are clearly defined and properly accounted for. The correct rule is that deposits must be 5% of the purchase price and kept in the dealer's general account. This specific amount creates a meaningful commitment from the buyer while keeping the funds in a readily accessible account that the dealer can properly trace and manage as part of the sale.

If deposits were only a smaller percentage, or could be kept in any account or in a separate trust, that would weaken the financial safeguards and complicate tracking of funds. Saying deposits aren’t required would remove a protective step for both parties. Therefore, the combination of a 5% deposit and placement in the dealer's general account aligns with the standard practice described.