The Free Enterprise System Quick Check

Question

2 of 52 of 5 Items
Question
Muhammad is considering investing some of his hard-earned cash by opening a certificate of deposit. Muhammad is disappointed to learn that If he invests $500
, he will likely only earn an additional $9
a year from today. So, he decides to invest his funds somewhere that will generate more income for him. Which of the following did Muhammad find unsatisfactory about the certificate of deposit?(1 point)
Responses

The return on his investment was too low.
The return on his investment was too low.

The liquidity of the investment was too high.
The liquidity of the investment was too high.

The risk of the investment was too high.
The risk of the investment was too high.

The liquidity of the investment was too low.

Answer 1

Muhammad found the investment unsatisfactory because the return on his investment was too low.