Question

A compass taken to Earth’s moon does not point in a specific direction on the moon. What is the most likely reason for the difference between how the compass works on Earth and on the moon? The moon lacks an atmosphere. The moon contains no rocks that have iron. The moon does not have a liquid core. The moon has no bodies of water.

Answer 1

Most likely, C. the Moon does not have a liquid core (this is what would create a magnetic field) is correct.

I hope this enough to help you!

Answer 2

It's thought that electric currents in Earth's liquid core are what creates Earth's magnetic field.  The moon does not have a liquid core.

The result is:  The moon's magnetic field is thousands of times smaller than Earth's.  And plus, the moon's magnetic field exists only in certain places, and there are large parts of the moon's surface where there is no magnetic field.  

So a compass would have to be very sensitive to do ANYTHING on the moon, and even then, it wouldn't be useful for indicating any particular direction.