Which of the Following Statements Best Describes the Effect of Climate

question 58

Multiple Choice

Which of the following statements best describes the effect of climate on biome distribution?

• A) Average annual temperature and precipitation are sufficient to predict which biome will be found in an area.
• B) Seasonal fluctuation of temperature is not a limiting factor in biome distribution if areas have the same annual temperature and precipitation means.
• C) Not only is the average climate important in determining biome distribution but so is the pattern of climatic variation.
• D) Temperate forests and grasslands are different biomes because they receive a different quality and quantity of sunlight, even though they have essentially the same annual temperature and precipitation.
• E) Correlation of climate with biome distribution is sufficient to determine the cause of biome patterns.

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Definitions:

Pure Expectations Hypothesis

A theory that suggests that the interest rates on long-term bonds will equal an average of current and future short-term interest rates.

Yield Curve

A graphical representation showing the relationship between the interest rates on debts of different maturities, typically of government bonds, highlighting investors' expectations for future interest rates and economic conditions.

Liquidity Premium

An additional return that investors demand for holding securities that are not easily convertible into cash without a significant loss in value.

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a specified time period, often measured as a percentage.