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Images displayed on the web (including Moodle) should have as small a file size as possible, while still maintaining adequate quality. . Don't use the image resize handles in text editors, as this is just the same large file shown in a smaller format. You should resize files before uploading them to use online.
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Many students these days access Moodle on their mobile devices and in some cases they will be paying for every mega byte of data they download.
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