This is for a school project

[Bbenjamin]

Why might an investor choose a Certificate deposit with a shorter term rather than a longer one, even though it pays less interest?

[buildersmate]

A) because it doesn't tie up the investor's money for so long - he might wish to plan the use the money elsewhere later.
B) Because the investor believes that investment conditions mean that future money rates will rise, giving him the opportunity to invest a little later at a higher rate of return.