Which of the Following Is Predicted to Occur in the 21st

question 71

Multiple Choice

Which of the following is predicted to occur in the 21st Century as a result of climate change?

• A) An increase in global snowfall due to an increase in atmospheric moisture.
• B) Increased frequency and intensity of tropical cyclones due to increased ocean temperatures.
• C) Less lake-effect snowfall due to warming waters.
• D) Decrease in extreme snowfall events (blizzards).

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Definitions:

Liquidity Premium

The additional return investors demand for holding a security that is not easily convertible into cash without loss of value.

CCC/CC/C Credit Ratings

Credit ratings given by rating agencies to denote high-risk bonds that are likely to default.

Inflation Premium

The extra yield that investors demand on securities to compensate for the risk of inflation reducing the value of future cash flows.

Fisher Effect

The Fisher Effect describes the relationship between nominal interest rates, real interest rates, and inflation, asserting that the nominal interest rate is equal to the real interest rate plus inflation.