Answer:
The colloidal solution in which both the dispersed phase and desperssion medium are liquid is called an emulsion.The emulsion droplets are somewhat larger than the particles of sol but smaller than coarse suspension.
There are two types of emulsions:
(i) Oil-in-water emulsion. In this type of emulsion the dispersed phase is oil and the dispersion medium is water. Milk is an example of this type of emulsion in which liquid fat is dispesed in water.
(ii) Water-in-oil emulsion. In this type of emulsion the dispersed phase is water while the dispersion medium is oil. Butter is an example of this type of emulsion in which water is dispersed in oil.