False:
The statement is false because the stability of a body floating in a liquid is determined by the relationship between the metacentre and the centre of buoyancy, not the centre of gravity.

Explanation:
- Stable Equilibrium: A body is said to be in stable equilibrium when it returns to its original position after it has been displaced.
- Centre of Gravity (CG): The centre of gravity of a body is the point through which the total weight of the body acts, irrespective of its orientation.
- Metacentre (M): The metacentre is the point at which the vertical line through the centre of buoyancy intersects the line of action of the buoyant force when the body is slightly tilted.

When a body is floating in a liquid, it experiences an upward buoyant force equal to the weight of the liquid displaced. This buoyant force acts through the centre of buoyancy, which is the centroid of the displaced volume.

Conditions for Stable Equilibrium:
For a body to be in stable equilibrium while floating in a liquid, the metacentre must be above the centre of gravity. This ensures that when the body is slightly tilted, the metacentric height (GM) causes a righting moment to be generated. This righting moment tends to bring the body back to its original position.

If the metacentre is below the centre of gravity, the body will be in an unstable equilibrium. This means that any slight tilt will create a destabilizing moment, causing the body to further tilt and potentially capsize.

Therefore, the stability of a floating body is determined by the relationship between the metacentre and the centre of buoyancy, not the centre of gravity.