Final answer:
True. It is important to maintain extra funds for liquidity purposes to cover unanticipated bills.
Step-by-step explanation:
True. In determining the amount of down payment and monthly mortgage payments you can afford, it is important to maintain some extra funds for liquidity purposes to cover unanticipated bills. These funds can serve as a financial cushion to help you handle unexpected expenses such as home repairs or medical expenses. By having extra funds available, you can ensure that you are able to meet your financial obligations and avoid financial hardship.