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As an instructor you can determine how to set up your grade book to best reflect your approach to evaluation, including the grading system and grade scheme that is most appropriate for your course. You can select how grades display to students, how they update in the grade book, and how you want to deal with ungraded items. You can create grade items for projects, assignments, discussions, quizzes, etc. to include in your grade book, and even associate them with other tools (e.g. Dropbox, Quizzes, Discussions).