What authority does the licensing agency have concerning a managing broker's trust account?

The authority of the licensing agency to inspect a managing broker's trust accounts, as indicated in the correct answer, highlights the importance of transparency and compliance in real estate transactions. Trust accounts are crucial for holding client funds, and the regulatory body is tasked with ensuring that these funds are managed in accordance with the established laws and regulations of Indiana.

By having the ability to inspect the broker's records at any time, the agency is able to verify that the funds are handled properly, ensuring protection for clients and maintaining the integrity of the real estate profession. This power to inspect also allows the agency to ensure compliance with other laws regarding the handling of client money, contributing to a fair and lawful real estate market.

Other options do not align with the typical authority of a licensing agency. For instance, the agency does not typically approve every transaction, as this could impede the operational efficiency of licensed brokers. Similarly, while the agency can recommend maintaining a reasonable balance, it does not enforce a specific mandated account balance. Lastly, the agency does not resolve financial disputes directly; rather, it oversees compliance and may take action against brokers who fail to manage their trust accounts properly but does not serve as a mediator in disputes.