Final answer:
Emergency funds require high liquidity to be quickly accessible in times of need.
Explanation:
Liquidity is an essential requirement for an emergency fund as it allows assets to be easily converted to cash when needed. Emergency funds should be kept in accessible accounts like bank accounts, which provide high liquidity and safety due to measures like FDIC insurance. Keeping emergency funds in accounts that offer low risk but high liquidity ensures that the money is readily available in case of unforeseen circumstances.
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