Question 26 (1 point) For relatively safe investments such as savings accounts,CDs, MMDAs, and T-bills liquidity is rarely a concern. True False Question 27 (1 point)

## Step 1<br />The problem presents a statement about the liquidity of certain types of investments, namely savings accounts, CDs (Certificate of Deposits), MMDAs (Money Market Deposit Accounts), and T-bills (Treasury bills). The statement claims that liquidity is rarely a concern for these types of investments.<br /><br />## Step 2<br />Liquidity refers to the ability of an asset to be quickly converted into cash without affecting its market price. In the context of savings accounts, CDs, MMDAs, and T-bills, these are considered relatively safe investments because they are highly liquid. This means that they can be easily converted into cash when needed.<br /><br />## Step 3<br />However, the statement is not entirely accurate. While these types of investments are generally considered safe and liquid, there may be certain conditions under which liquidity could become a concern. For example, if an investor has a CD that is nearing its maturity date, it may not be as liquid as other types of investments. Similarly, T-bills, while highly liquid, may not be as liquid as other types of investments.<br /><br />## Step 4<br />Therefore, the statement that liquidity is rarely a concern for these types of investments is not entirely accurate. It is more accurate to say that liquidity is generally not a concern for these types of investments, but it can be under certain conditions.