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A simple terminal is able to accept character codes (commonly, ASCII) and produce characters limited to numbers, figures and punctuation. Limited graphics (ASCII art) may be used to enhance the presentation. Dumb terminals do not use complex hardware such as microprocessors to function.

An intelligent terminal can, for instance, reposition its cursor to any point in the display and may allow editing of the presentation for re-sending. Intelligent terminals commonly use microprocessors to perform their functions.

A thin client, acting as a terminal, loads operating code from a server and then offers advanced functions beyond those of a "dumb" terminal without needing all of the code to be stored in the thin client's memory.

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