Clouds are formed when the sun evaporates water. The vapor rises and becomes cooler. When it is cool enough, it condenses. Each droplet forms round a speck of dust in the air. Millions and millions of these droplets, gathered in a big mass, form a cloud.
HIGH ALTITUDE CLOUDS
Cirrus, Cirrocumulus, Cirrostratus, Altostratus, Anvil Clouds

Above 20,000 feet


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MEDIUM ALTITUDE CLOUDS
Altocumulus, Stratocumulus, Cumulus

7,000 to 20,000 feet


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LOW ALTITUDE CLOUDS
Cumulonimbus, Stratus, Nimbostratus, Fog

Below 7,000 feet


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Rainbows are actually the suns rays separated into different colors by water droplets in the air acting as prisms.

FUN-FACT: Clouds are white because tiny water droplets in clouds reflect the sun like a mirror reflects light. Thick clouds look dark gray underneath because little sunlight can pass through them.