The Writing Center • University of North Carolina at Chapel Hill

Essay Exams

What this handout is about.

At some time in your undergraduate career, you’re going to have to write an essay exam. This thought can inspire a fair amount of fear: we struggle enough with essays when they aren’t timed events based on unknown questions. The goal of this handout is to give you some easy and effective strategies that will help you take control of the situation and do your best.

Why do instructors give essay exams?

Essay exams are a useful tool for finding out if you can sort through a large body of information, figure out what is important, and explain why it is important. Essay exams challenge you to come up with key course ideas and put them in your own words and to use the interpretive or analytical skills you’ve practiced in the course. Instructors want to see whether:

  • You understand concepts that provide the basis for the course
  • You can use those concepts to interpret specific materials
  • You can make connections, see relationships, draw comparisons and contrasts
  • You can synthesize diverse information in support of an original assertion
  • You can justify your own evaluations based on appropriate criteria
  • You can argue your own opinions with convincing evidence
  • You can think critically and analytically about a subject

What essay questions require

Exam questions can reach pretty far into the course materials, so you cannot hope to do well on them if you do not keep up with the readings and assignments from the beginning of the course. The most successful essay exam takers are prepared for anything reasonable, and they probably have some intelligent guesses about the content of the exam before they take it. How can you be a prepared exam taker? Try some of the following suggestions during the semester:

  • Do the reading as the syllabus dictates; keeping up with the reading while the related concepts are being discussed in class saves you double the effort later.
  • Go to lectures (and put away your phone, the newspaper, and that crossword puzzle!).
  • Take careful notes that you’ll understand months later. If this is not your strong suit or the conventions for a particular discipline are different from what you are used to, ask your TA or the Learning Center for advice.
  • Participate in your discussion sections; this will help you absorb the material better so you don’t have to study as hard.
  • Organize small study groups with classmates to explore and review course materials throughout the semester. Others will catch things you might miss even when paying attention. This is not cheating. As long as what you write on the essay is your own work, formulating ideas and sharing notes is okay. In fact, it is a big part of the learning process.
  • As an exam approaches, find out what you can about the form it will take. This will help you forecast the questions that will be on the exam, and prepare for them.

These suggestions will save you lots of time and misery later. Remember that you can’t cram weeks of information into a single day or night of study. So why put yourself in that position?

Now let’s focus on studying for the exam. You’ll notice the following suggestions are all based on organizing your study materials into manageable chunks of related material. If you have a plan of attack, you’ll feel more confident and your answers will be more clear. Here are some tips: 

  • Don’t just memorize aimlessly; clarify the important issues of the course and use these issues to focus your understanding of specific facts and particular readings.
  • Try to organize and prioritize the information into a thematic pattern. Look at what you’ve studied and find a way to put things into related groups. Find the fundamental ideas that have been emphasized throughout the course and organize your notes into broad categories. Think about how different categories relate to each other.
  • Find out what you don’t know, but need to know, by making up test questions and trying to answer them. Studying in groups helps as well.

Taking the exam

Read the exam carefully.

  • If you are given the entire exam at once and can determine your approach on your own, read the entire exam before you get started.
  • Look at how many points each part earns you, and find hints for how long your answers should be.
  • Figure out how much time you have and how best to use it. Write down the actual clock time that you expect to take in each section, and stick to it. This will help you avoid spending all your time on only one section. One strategy is to divide the available time according to percentage worth of the question. You don’t want to spend half of your time on something that is only worth one tenth of the total points.
  • As you read, make tentative choices of the questions you will answer (if you have a choice). Don’t just answer the first essay question you encounter. Instead, read through all of the options. Jot down really brief ideas for each question before deciding.
  • Remember that the easiest-looking question is not always as easy as it looks. Focus your attention on questions for which you can explain your answer most thoroughly, rather than settle on questions where you know the answer but can’t say why.

Analyze the questions

  • Decide what you are being asked to do. If you skim the question to find the main “topic” and then rush to grasp any related ideas you can recall, you may become flustered, lose concentration, and even go blank. Try looking closely at what the question is directing you to do, and try to understand the sort of writing that will be required.
  • Focus on what you do know about the question, not on what you don’t.
  • Look at the active verbs in the assignment—they tell you what you should be doing. We’ve included some of these below, with some suggestions on what they might mean. (For help with this sort of detective work, see the Writing Center handout titled Reading Assignments.)

Information words, such as who, what, when, where, how, and why ask you to demonstrate what you know about the subject. Information words may include:

  • define—give the subject’s meaning (according to someone or something). Sometimes you have to give more than one view on the subject’s meaning.
  • explain why/how—give reasons why or examples of how something happened.
  • illustrate—give descriptive examples of the subject and show how each is connected with the subject.
  • summarize—briefly cover the important ideas you learned about the subject.
  • trace—outline how something has changed or developed from an earlier time to its current form.
  • research—gather material from outside sources about the subject, often with the implication or requirement that you will analyze what you’ve found.

Relation words ask you to demonstrate how things are connected. Relation words may include:

  • compare—show how two or more things are similar (and, sometimes, different).
  • contrast—show how two or more things are dissimilar.
  • apply—use details that you’ve been given to demonstrate how an idea, theory, or concept works in a particular situation.
  • cause—show how one event or series of events made something else happen.
  • relate—show or describe the connections between things.

Interpretation words ask you to defend ideas of your own about the subject. Don’t see these words as requesting opinion alone (unless the assignment specifically says so), but as requiring opinion that is supported by concrete evidence. Remember examples, principles, definitions, or concepts from class or research and use them in your interpretation. Interpretation words may include:

  • prove, justify—give reasons or examples to demonstrate how or why something is the truth.
  • evaluate, respond, assess—state your opinion of the subject as good, bad, or some combination of the two, with examples and reasons (you may want to compare your subject to something else).
  • support—give reasons or evidence for something you believe (be sure to state clearly what it is that you believe).
  • synthesize—put two or more things together that haven’t been put together before; don’t just summarize one and then the other, and say that they are similar or different—you must provide a reason for putting them together (as opposed to compare and contrast—see above).
  • analyze—look closely at the components of something to figure out how it works, what it might mean, or why it is important.
  • argue—take a side and defend it (with proof) against the other side.

Plan your answers

Think about your time again. How much planning time you should take depends on how much time you have for each question and how many points each question is worth. Here are some general guidelines: 

  • For short-answer definitions and identifications, just take a few seconds. Skip over any you don’t recognize fairly quickly, and come back to them when another question jogs your memory.
  • For answers that require a paragraph or two, jot down several important ideas or specific examples that help to focus your thoughts.
  • For longer answers, you will need to develop a much more definite strategy of organization. You only have time for one draft, so allow a reasonable amount of time—as much as a quarter of the time you’ve allotted for the question—for making notes, determining a thesis, and developing an outline.
  • For questions with several parts (different requests or directions, a sequence of questions), make a list of the parts so that you do not miss or minimize one part. One way to be sure you answer them all is to number them in the question and in your outline.
  • You may have to try two or three outlines or clusters before you hit on a workable plan. But be realistic—you want a plan you can develop within the limited time allotted for your answer. Your outline will have to be selective—not everything you know, but what you know that you can state clearly and keep to the point in the time available.

Again, focus on what you do know about the question, not on what you don’t.

Writing your answers

As with planning, your strategy for writing depends on the length of your answer:

  • For short identifications and definitions, it is usually best to start with a general identifying statement and then move on to describe specific applications or explanations. Two sentences will almost always suffice, but make sure they are complete sentences. Find out whether the instructor wants definition alone, or definition and significance. Why is the identification term or object important?
  • For longer answers, begin by stating your forecasting statement or thesis clearly and explicitly. Strive for focus, simplicity, and clarity. In stating your point and developing your answers, you may want to use important course vocabulary words from the question. For example, if the question is, “How does wisteria function as a representation of memory in Faulkner’s Absalom, Absalom?” you may want to use the words wisteria, representation, memory, and Faulkner) in your thesis statement and answer. Use these important words or concepts throughout the answer.
  • If you have devised a promising outline for your answer, then you will be able to forecast your overall plan and its subpoints in your opening sentence. Forecasting impresses readers and has the very practical advantage of making your answer easier to read. Also, if you don’t finish writing, it tells your reader what you would have said if you had finished (and may get you partial points).
  • You might want to use briefer paragraphs than you ordinarily do and signal clear relations between paragraphs with transition phrases or sentences.
  • As you move ahead with the writing, you may think of new subpoints or ideas to include in the essay. Stop briefly to make a note of these on your original outline. If they are most appropriately inserted in a section you’ve already written, write them neatly in the margin, at the top of the page, or on the last page, with arrows or marks to alert the reader to where they fit in your answer. Be as neat and clear as possible.
  • Don’t pad your answer with irrelevancies and repetitions just to fill up space. Within the time available, write a comprehensive, specific answer.
  • Watch the clock carefully to ensure that you do not spend too much time on one answer. You must be realistic about the time constraints of an essay exam. If you write one dazzling answer on an exam with three equally-weighted required questions, you earn only 33 points—not enough to pass at most colleges. This may seem unfair, but keep in mind that instructors plan exams to be reasonably comprehensive. They want you to write about the course materials in two or three or more ways, not just one way. Hint: if you finish a half-hour essay in 10 minutes, you may need to develop some of your ideas more fully.
  • If you run out of time when you are writing an answer, jot down the remaining main ideas from your outline, just to show that you know the material and with more time could have continued your exposition.
  • Double-space to leave room for additions, and strike through errors or changes with one straight line (avoid erasing or scribbling over). Keep things as clean as possible. You never know what will earn you partial credit.
  • Write legibly and proofread. Remember that your instructor will likely be reading a large pile of exams. The more difficult they are to read, the more exasperated the instructor might become. Your instructor also cannot give you credit for what they cannot understand. A few minutes of careful proofreading can improve your grade.

Perhaps the most important thing to keep in mind in writing essay exams is that you have a limited amount of time and space in which to get across the knowledge you have acquired and your ability to use it. Essay exams are not the place to be subtle or vague. It’s okay to have an obvious structure, even the five-paragraph essay format you may have been taught in high school. Introduce your main idea, have several paragraphs of support—each with a single point defended by specific examples, and conclude with a restatement of your main point and its significance.

Some physiological tips

Just think—we expect athletes to practice constantly and use everything in their abilities and situations in order to achieve success. Yet, somehow many students are convinced that one day’s worth of studying, no sleep, and some well-placed compliments (“Gee, Dr. So-and-so, I really enjoyed your last lecture”) are good preparation for a test. Essay exams are like any other testing situation in life: you’ll do best if you are prepared for what is expected of you, have practiced doing it before, and have arrived in the best shape to do it. You may not want to believe this, but it’s true: a good night’s sleep and a relaxed mind and body can do as much or more for you as any last-minute cram session. Colleges abound with tales of woe about students who slept through exams because they stayed up all night, wrote an essay on the wrong topic, forgot everything they studied, or freaked out in the exam and hyperventilated. If you are rested, breathing normally, and have brought along some healthy, energy-boosting snacks that you can eat or drink quietly, you are in a much better position to do a good job on the test. You aren’t going to write a good essay on something you figured out at 4 a.m. that morning. If you prepare yourself well throughout the semester, you don’t risk your whole grade on an overloaded, undernourished brain.

If for some reason you get yourself into this situation, take a minute every once in a while during the test to breathe deeply, stretch, and clear your brain. You need to be especially aware of the likelihood of errors, so check your essays thoroughly before you hand them in to make sure they answer the right questions and don’t have big oversights or mistakes (like saying “Hitler” when you really mean “Churchill”).

If you tend to go blank during exams, try studying in the same classroom in which the test will be given. Some research suggests that people attach ideas to their surroundings, so it might jog your memory to see the same things you were looking at while you studied.

Try good luck charms. Bring in something you associate with success or the support of your loved ones, and use it as a psychological boost.

Take all of the time you’ve been allotted. Reread, rework, and rethink your answers if you have extra time at the end, rather than giving up and handing the exam in the minute you’ve written your last sentence. Use every advantage you are given.

Remember that instructors do not want to see you trip up—they want to see you do well. With this in mind, try to relax and just do the best you can. The more you panic, the more mistakes you are liable to make. Put the test in perspective: will you die from a poor performance? Will you lose all of your friends? Will your entire future be destroyed? Remember: it’s just a test.

Works consulted

We consulted these works while writing this handout. This is not a comprehensive list of resources on the handout’s topic, and we encourage you to do your own research to find additional publications. Please do not use this list as a model for the format of your own reference list, as it may not match the citation style you are using. For guidance on formatting citations, please see the UNC Libraries citation tutorial . We revise these tips periodically and welcome feedback.

Axelrod, Rise B., and Charles R. Cooper. 2016. The St. Martin’s Guide to Writing , 11th ed. Boston: Bedford/St Martin’s.

Fowler, Ramsay H., and Jane E. Aaron. 2016. The Little, Brown Handbook , 13th ed. Boston: Pearson.

Gefvert, Constance J. 1988. The Confident Writer: A Norton Handbook , 2nd ed. New York: W.W. Norton and Company.

Kirszner, Laurie G. 1988. Writing: A College Rhetoric , 2nd ed. New York: Holt, Rinehart, and Winston.

Lunsford, Andrea A. 2015. The St. Martin’s Handbook , 8th ed. Boston: Bedford/St Martin’s.

Woodman, Leonara, and Thomas P. Adler. 1988. The Writer’s Choices , 2nd ed. Northbrook, Illinois: Scott Foresman.

You may reproduce it for non-commercial use if you use the entire handout and attribute the source: The Writing Center, University of North Carolina at Chapel Hill

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Literacy Ideas

How to Write an Excellent Explanation Text

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Welcome to our complete guide to writing an explanation text.  This guide is intended for both teachers and students to make the process of writing fun and straightforward.

This page has plenty of great content, and downloadable resources such as graphic organizer prompts and much more.  If you like what you see here, check out all our other writing genre guides.

WHAT IS AN EXPLANATION TEXT?

Explanation Text | Explanation texts 2 | How to Write an Excellent Explanation Text | literacyideas.com

An explanation text tells your audience how something works or why something happens.

Explanations detail and logically describe the stages in a process , such as the water cycle or how a steam engine works.  Other examples could be how a law is made or why we blink when we sneeze.

Explanation texts are frequently incorporated into other texts, used to provide information which answers questions of interest on that topic.

TYPES OF EXPLANATION TEXT

Not all explanation texts are created equal, and they vary in complexity to research and construct. As such, we have listed them from easiest to most challenging.

  • Sequential Explanations – These detail the stages in an event, e.g., how a caterpillar turns into a moth. These are excellent starting points for younger writers and those new to this genre of writing.
  • Causal Explanations – Details what causes the change from one stage to the next, i.e., How a president is elected.
  • Theoretical Explanations – Details the possible phenomena behind a natural or created process that is not fully understood. e.g. What caused the Nazis to lose World War II?
  • Scientific– e.g. Explain the causes of climate change (Factorial)
  • Historical– e.g. Explain the causes of World War 2 (Factorial)

DON’T GET CONFUSED BETWEEN EXPLANATION TEXTS AND PROCEDURAL TEXTS

An explanatory text has some similarities to a procedural text , and these can often be confused; however, an explanation text explains the how and why behind a process, such as  

  • What causes a Tsunami?
  • Why are our rainforests disappearing?
  • The process of making aluminium.

A procedural text is about writing logical and efficient instructions to complete a task. It is all about the ‘how,’ whereas an explanation focuses more on the ‘why.’ So as we can see, although they are similar, both text types are very different in purpose.

A COMPLETE UNIT ON TEACHING EXPLANATION TEXTS

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Teaching students to write instruction manuals, recipes and science experiments can be challenging for the creative writer and teacher… ⭐ UNTIL NOW ⭐ Because the PERFECT PROCEDURAL WRITING UNIT offers a complete solution to teaching all styles of procedural writing, including,

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STRUCTURE AND FEATURES OF AN EXPLANATORY ESSAY

Explanatory writing structure.

TITLES Which identify the topic of your explanation. You may pose this as a question at the beginning with how? or why?

STRONG OPENING STATEMENT Identifying the process to be explained. Emphasize the process rather than the particular thing involved in the process.

SEQUENCING Use sequential paragraphs or statements describing how or why something happens. Show connections such as cause and effect or temporal sequence.

WRAPPING IT UP A strong concluding paragraph or sentence that draws everything together will add more validity to your explanation.

EXPLANATORY WRITING FEATURES

GENERALIZE Talk about your topics in groups or as a collective rather than as individuals.

CONNECTIVE LANGUAGE Use language which link cause and effect.

GET TECHNICAL & DETAILED Use technical language and terms specific to your subject. Use technical descriptions to crate richer meaning.

TENSE AND VOICE Explanations are written in the passive voice and in timeless present tense

VISUALS Use graphic organizers, labelled diagrams and even videos you are constructing a digital text to illustrate your understanding.

THE LANGUAGE FEATURES OF AN EXPLANATION TEXT

Explanation Text | Well labelled images can save you a great deal of | How to Write an Excellent Explanation Text | literacyideas.com

  • Use technical terms such as evaporation and degradation if writing a water cycle explanation text.
  • Action verbs and present tense such as runs, develop and becomes
  • Cause and effect terms such as because of.., due to.., therefore, and as a result

USE YOUR TIME EFFECTIVELY

Using your writing time effectively is really crucial.  When writing an explanation, you should aim to spend about one-fifth of your time researching your topic to ensure you know what you are talking about.

Next, take an equal amount of time to structure your writing using a graphic organizer or mind map, which can be found below. If you follow this model, you only need to spend under half your time writing.  Your ideas and structure will already be formed.

This will leave you a reasonable window to edit and revise your essay for meaning, spelling and grammar and structure. Using graphic organizers , planning tools, and writing checklists will greatly assist the planning and editing time.

HOW TO WRITE AN EXPLANATORY TEXT

Points to consider before writing your explanatory essay.

  • What is it about? What are you explaining? Are you explaining how or why something happens or are you explaining a process?
  • What is the title?
  • What are the essential parts and sections of what you want to explain? How would you describe it and its parts? Which parts need to be described as part of the explanation?
  • How does it work? What happens first, next, and why?
  • What else might you include?

Explanation Text | Explanatory Text Template | How to Write an Excellent Explanation Text | literacyideas.com

Introduction: Because you are explaining a process, your audience will require some context about your topic. Firstly, ensure you provide some facts and insights so that it makes sense to your audience.

Secondly, You have obviously found this subject interesting enough to write an essay about it, so ensure what piqued your interest is translated to your audience by creating a hook that leaves your audience wanting to read on.

Body: Keep everything in chronological order here to ensure your explanation follows a sequence.

In this section, you want your paragraphs to really emphasise what happens in the opening of each paragraph and then lead into how and, or why things occur using relevant technical terms and action verbs.

Use the bulk of your paragraph to focus on the how and why that will both fill your reader with wonder, and lead them to ask questions about your subject area.

Use connective terms and transitional language that is not repetitive when linking paragraphs. Be sure to read our complete guide to writing perfect paragraphs for further details.

Make sure that you have entirely covered the explanation before moving on to your conclusion.

Conclusion: Use the conclusion to pose and or answer any apparent questions the audience may have on your topic.

Also, feel free to share a very personal opinion or insight about your topic to build a connection with the audience to ensure your explanation text is worthy of their time.

TIPS FOR WRITING A GREAT EXPLANATION TEXT

Explanatory writing graphic organizer template.

Explanation Text | EXPLANATION | How to Write an Excellent Explanation Text | literacyideas.com

EXPLANATORY TEXT WRITING PROMPTS

Explanatory text tutorial videos.

Explanation Text | explanation text tutorial video 1 | How to Write an Excellent Explanation Text | literacyideas.com

Teaching Resources

Use our resources and tools to improve your student’s writing skills through proven teaching strategies.

A COMPLETE UNIT OF WORK ON EXPLANATION WRITING?

explanation writing

We pride ourselves on being the web’s best resource for teaching students and teachers how to write an explanation text. We value the fact you have taken the time to read our comprehensive guides to understand the fundamentals of writing stories.

We also understand some of you just don’t have the luxury of time or resources to create engaging resources when needed.

If you are time-poor and looking for an in-depth solution that encompasses all of the concepts outlined in this article, I strongly recommend looking at the Excellent Explanation Text Writing Unit.

Working in partnership with Innovative Teaching Ideas , we confidently recommend this resource as an all-in-one solution to teaching explanatory texts.

This unit will find over 91 pages of engaging and innovative teaching ideas.

EXPLANATION TEXT WRITING CHECKLISTS FOR JUNIOR, MIDDLE & SENIOR STUDENTS

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OTHER GREAT ARTICLES RELATED TO EXPLANATION TEXT WRITING

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Explanation Texts: Top 5 Writing tips for younger students

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How to write a perfect 5 Paragraph Essay

information report writing skills

5 Essential Informational Text Writing Skills to Master

Explanation Text | procedural writing28129 | 5 Procedural Writing Lesson Plans Students and Teachers will Love | literacyideas.com

5 Procedural Writing Lesson Plans Students and Teachers will Love

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Expository Essay

Quiz   by jessica proa.

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  • Q 1 / 25 Score 0 Which of the following is the first section of an expository essay? 29 introduction body paragraph 1 conclusion body paragraph 2

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  • Q 1 Which of the following is the first section of an expository essay? introduction body paragraph 1 conclusion body paragraph 2 30 s
  • Q 2 Which of the following is included in an introduction? thesis topic sentence conclusion example 120 s
  • Q 3 Which of the following is not included in an introduction? explanation thesis hook overview 120 s
  • Q 4 Which of the following answers the prompt in an introduction? explanation thesis overview hook 120 s
  • Q 5 Which of the following is meant to make the reader interested or engaged in the introduction? explaination thesis hook overview 120 s
  • Q 6 Which of the following ties the hook to the thesis in the introduction? topic sentence explaination examples overview 120 s
  • Q 7 Which of the following goes last in an introduction? thesis examples overview hook 120 s
  • Q 8 Which of the following goes first in an introduction? hook thesis overview examples 120 s
  • Q 9 What should all body paragraphs begin with? examples topic sentence thesis explaination 120 s
  • Q 10 At least how many sentences should your introduction be? 3 4 1 5 120 s
  • Q 11 Which of the following is not a paragraph you will find in your expository essay? Narrative Body Paragraph Conclusion Introduction 120 s
  • Q 12 Examples in a body paragraph should be followed by which of the following? topic sentence thesis overview explaination 120 s
  • Q 13 How many examples should each body paragraph include? 3 7 4 2 120 s
  • Q 14 What kind of essay is required on your STAAR exam? narrative expository 120 s
  • Q 15 Which of following is NOT a score you can receive on your essay? 5 4 2 1 120 s

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Explanation Text Quiz

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Explanation text is a piece of non-fiction writing explaining an action process or event in a detailed but simple way. It features numbered points, time connectives, pictures, diagrams, labels and captions to help the receiver understand the process of what's being delivered. Do you know what are Explanation Texts? Find out in this quiz!

What is the definition of explanation text?

A text which is designed to describe how something is achieved through a sequence of actions or steps.

A story with complication or problematic events and it tries to find the resolutions to solve the problems.

A text which tells processes relating to forming of natural, social, scientific and cultural phenomena.

A text which retells events or experiences in the past for informing or entertaining.

A text that elaborates the writer’s idea about the phenomenon surrounding.

Rate this question:

2. What is the communicative purpose of the Explanation text?

To present information about something generally.

To describe and reveal a particular person, place, or thing.

To analyze and evaluate some creative art works and to inform about its strengths and weaknesses.

To explain the processes that occur in the formation or activity associated with natural, social, scientific, cultural phenomena.

To persuade the readers by presenting arguments so that they will agree and follow the writer’s view.

What is the text structure of Explanation text?

Identification - Description.

Thesis – Arguments - Reiteration.

Goal – Materials/ Ingredients - Steps.

Orientation – Complication- Resolution.

General Statement – Sequenced Explanation.

One of the linguistic features of Explanation is the usage of Simple Present Tense . Which the following sentence does NOT use Simple Present Tense ?

It takes place more rapidly when the air is dry.

The displaced rock pushes water above it like a giant paddle.

The first phase of respiration begins with breathing in or inhalation.

People in most regions in the world have seen a very rare natural phenomenon.

The exhaust from vehicles releases nitrogen oxides and sulphur dioxide into the air

One of the linguistic features of Explanation is the usage of Passive S entence . Which is the correct pattern of Passive Sentence?

Be + Verb 1

Be + Verb 2

Be + Verb 3

Be + Verb-ing

Be + to infinitive

What does the text tell about? - ProProfs

What does the text tell about?

How we breathe out.

How we breathe in.

Parts of our lungs.

How lungs work.

Why lungs work.

What does the word 'they' (Paragraph 1) refer to? - ProProfs

What does the word ' they'  (Paragraph 1) refer to?

How are the idea in paragraph 2 and 3 related.

Both paragraphs tell about the process of inhalation.

Both paragraphs tell about the process of exhalation.

Neither paragraph 2 nor paragraph 3 tells about the process of inhalation.

Paragraph 3 tells about the process of exhalation while paragraph 2 is about the process of inhalation.

Paragraph 2 tells about the process of inhalation while paragraph 3 is about the process of exhalation.

The purpose of the text is to ... - ProProfs

The purpose of the text is to ...

Explain how market works.

Describe the situation in a market.

Inform about the difference of supply from demand.

Tell about the interaction between buyers and sellers.

Persuade the readers to buy goods in traditional market.

The ‘ Law of Demand ’ works if ...

More people buy the good when it’s getting more and more expensive.

The price of the goods rises when more people tend to buy it.

The price of goods comes down when fewer people buy it.

Very few people buy goods when its price rises up.

More people buy goods when its price rises up.

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1. An essay is

a. a song with a story

b. a poem that has many stanzas

c. a type of writing that has organized paragraphs

d. a type of writing that requires research

2. The introductory paragraph of an essay requires

a. The topic, thesis, and main ideas

b. The topic, thesis, and supporting details

c. The reason for the essay, the topic, and thesis

3. Essays are

a. Easier to write because you can put your opinion

b. Harder to write because they require a lot of research

c. Flexible because you can use a narrative style or structured paragraphs

4. When writing the main idea paragraphs

a. Include the thesis to remind the reader

b. Include supporting details with examples and specific details

c. Make sure the supporting details are clearly shown through the main idea

d. Use opinion to show why your thesis is right

5. The conclusion of an essay should

a. Include last minute ideas and thoughts for the future

b. Have a restatement of the thesis and thoughts for the future

c. Be a recap of the whole essay

d. Be only two sentences

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  • 1. Multiple Choice Edit 30 seconds 1 pt How many different types of paragraphs are in an essay? One Two Three Four
  • 2. Multiple Choice Edit 30 seconds 1 pt What do you call the first paragraph in a formal essay? Beginning Grabber Hook Introduction
  • 3. Multiple Choice Edit 30 seconds 1 pt What do you call the last paragraph in a formal essay? Resolution Conclusion Ending Finale
  • 4. Multiple Choice Edit 30 seconds 1 pt What do you call the paragraphs where key ideas are developed and explained? Introductions Body Paragraphs Key Paragraphs Conclusions
  • 5. Multiple Choice Edit 30 seconds 1 pt What three elements must be included in an introduction? Evidence, Explanation, Elaboration Opinion, Reasons, Evidence Lead, Background, Thesis Thesis, Restatement, Conclusion
  • 6. Multiple Choice Edit 30 seconds 1 pt What are the two parts of a thesis statement? Subject & Predicate Thesis & Statement Topic & Subject Answer & Reasons
  • 7. Multiple Choice Edit 1 minute 1 pt How many body paragraphs should a formal essay have? One Two Three Four
  • 8. Multiple Choice Edit 30 seconds 1 pt What is the first step in the writing process? Plan the Essay Proofread the Essay Cite Evidence Draft the Essay
  • 9. Multiple Choice Edit 30 seconds 1 pt Begin every body paragraph with  _________________. a lead an introduction a topic sentence background information
  • 10. Multiple Choice Edit 30 seconds 1 pt Which type of paragraph must contain cited evidence? Body Paragraph Beginning Conclusion Resolution
  • 11. Multiple Choice Edit 30 seconds 1 pt When you cite evidence you must _______. credit, or name, the source summarize ideas copy exact words retell in your own words
  • 12. Multiple Choice Edit 30 seconds 1 pt After citing evidence you must _____ and _____. review, revise quote, paraphrase explain, elaborate introduce, summarize
  • 13. Multiple Choice Edit 30 seconds 1 pt Which transition signals a conclusion? In addition, Similarly, For example, In short,
  • 14. Multiple Choice Edit 30 seconds 1 pt Which transition signals an explanation? The author states This illustrates The author states In the same way
  • 15. Multiple Choice Edit 30 seconds 1 pt Which transition signals a contrast (difference)? Furthermore For instance As a result However

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explanation essay quiz

What Is a Capstone Project vs. Thesis

explanation essay quiz

As students near the end of their academic journey, they encounter a crucial project called the capstone – a culmination of all they've learned. But what exactly is a capstone project? 

This article aims to demystify capstone projects, explaining what they are, why they matter, and what you can expect when you embark on this final academic endeavor.

Capstone Project Meaning

A capstone project is a comprehensive, culminating academic endeavor undertaken by students typically in their final year of study. 

It synthesizes their learning experiences, requiring students to apply the knowledge, skills, and competencies gained throughout their academic journey. A capstone project aims to address a real-world problem or explore a topic of interest in depth. 

As interdisciplinary papers, capstone projects encourage critical thinking, problem-solving, and creativity. They allow students to showcase their mastery of their field of study and demonstrate their readiness for future academic or professional pursuits.

Now that we’ve defined what is a capstone project, let’s discuss its importance in the academic landscape. In case you have short-form compositions to handle, simply say, ‘ do my essay for me ,’ and our writers will take care of your workload.

Why Is a Capstone Project Important

A capstone project is crucial because it allows students to combine everything they've learned in school and apply it to real-life situations or big problems. 

It's like the ultimate test of what they know and can do. By working on these projects, students get hands-on experience, learn to think critically and figure out how to solve tough problems. 

Plus, it's a chance to show off their skills and prove they're ready for whatever comes next, whether that's starting a career or going on to more schooling.

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What Is the Purpose of a Capstone Project

Here are three key purposes of a capstone project:

What Is the Purpose of a Capstone Project

Integration of Knowledge and Skills

Capstones often require students to draw upon the knowledge and skills they have acquired throughout their academic program. The importance of capstone project lies in helping students synthesize what they have learned and apply it to a real-world problem or project. 

This integration helps students demonstrate their proficiency and readiness for graduation or entry into their chosen profession.

Culmination of Learning

Capstone projects culminate a student's academic journey, allowing them to apply theoretical knowledge to real-world scenarios. 

tackling a significant project or problem, students demonstrate their understanding of concepts and their ability to translate them into practical solutions, reinforcing their learning journey.

Professional Development

Capstone projects allow students to develop skills relevant to their future careers. These projects can also be tangible examples of their capabilities to potential employers or graduate programs.

Whether it's conducting research, presenting findings, or collaborating with peers, students gain valuable experience that enhances their professional readiness. 

Types of Capstone Projects

Capstones vary widely depending on the academic discipline, institution, and specific program requirements. Here are some common types:

What Is the Difference Between a Thesis and a Capstone Project

Here's a breakdown of the key differences between a thesis and a capstone project:

How to Write a Capstone Project

Let's dive into the specifics with actionable and meaningful steps for writing a capstone project:

1. Select a Pertinent Topic

Identify a topic that aligns with your academic interests, program requirements, and real-world relevance. Consider issues or challenges within your field that merit further exploration or solution. 

Conduct thorough research to ensure the topic is both feasible and significant. Here are some brilliant capstone ideas for your inspiration.

2. Define Clear Objectives

Clearly articulate the objectives of your capstone project. What specific outcomes do you aim to achieve? 

Whether it's solving a problem, answering a research question, or developing a product, ensure your objectives are specific, measurable, achievable, relevant, and time-bound (SMART).

3. Conduct Comprehensive Research

Dive deep into existing literature, theories, and empirical evidence related to your chosen topic. Identify gaps, controversies, or areas for further investigation. 

Synthesize relevant findings and insights to inform the development of your project and provide a solid foundation for your analysis or implementation.

4. Develop a Structured Plan

What is a capstone project in college without a rigid structure? Outline a comprehensive plan for your capstone project, including key milestones, tasks, and deadlines. 

Break down the project into manageable phases, such as literature review, data collection, analysis, and presentation. Establish clear criteria for success and regularly monitor progress to stay on track.

5. Implement Methodological Rigor

If your project involves research, ensure methodological rigor by selecting appropriate research methods, tools, and techniques. 

Develop a detailed research design or project plan that addresses key methodological considerations, such as sampling, data collection, analysis, and validity. Adhere to ethical guidelines and best practices throughout the research process.

6. Analyze and Interpret Findings

Analyze your data or findings using appropriate analytical techniques and tools. Interpret the results in relation to your research questions or objectives, highlighting key patterns, trends, or insights. 

Critically evaluate the significance and implications of your findings within the broader context of your field or industry.

7. Communicate Effectively

Present your capstone project clearly, concisely, and compellingly. Whether it's a written report, presentation, or multimedia deliverable, tailor your communication style to your target audience. Clearly articulate your research questions, methodology, findings, and conclusions. 

Use visuals, examples, and real-world applications to enhance understanding and engagement. Be prepared to defend your project and answer questions from peers, faculty, or stakeholders.

In wrapping up, what is a capstone project? It’s like the grand finale of your academic journey, where all the knowledge and skills you've acquired come together in one big project. 

It's not just about passing a test or getting a grade – it's about proving you've got what it takes to make a real difference in the world. So, if you ever need capstone project help , our writers will gladly lend you a hand in no time.

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What Is a Capstone Project in College?

How to do a capstone project, how long does a capstone project take to complete.

Annie Lambert

Annie Lambert

specializes in creating authoritative content on marketing, business, and finance, with a versatile ability to handle any essay type and dissertations. With a Master’s degree in Business Administration and a passion for social issues, her writing not only educates but also inspires action. On EssayPro blog, Annie delivers detailed guides and thought-provoking discussions on pressing economic and social topics. When not writing, she’s a guest speaker at various business seminars.

explanation essay quiz

is an expert in nursing and healthcare, with a strong background in history, law, and literature. Holding advanced degrees in nursing and public health, his analytical approach and comprehensive knowledge help students navigate complex topics. On EssayPro blog, Adam provides insightful articles on everything from historical analysis to the intricacies of healthcare policies. In his downtime, he enjoys historical documentaries and volunteering at local clinics.

  • T. (2023, June 16). What Is a Capstone Project? National University. https://www.nu.edu/blog/what-is-a-capstone-project/
  • Lukins, S. (2024, May 12). What is a capstone project? And why is it important? Top Universities. https://www.topuniversities.com/student-info/careers-advice-articles/what-capstone-project-why-it-important
  • Capstone Project vs. Thesis: What’s the Difference? (2021, December 9). UAGC. https://www.uagc.edu/blog/capstone-project-vs-thesis-whats-difference

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  • Creatinine test

A creatinine test is a measure of how well your kidneys are performing their job of filtering waste from your blood.

Creatinine is a chemical compound left over from energy-producing processes in your muscles. Healthy kidneys filter creatinine out of the blood. Creatinine exits your body as a waste product in urine.

A measurement of creatinine in your blood or urine provides clues to help your doctor determine how well the kidneys are working.

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Your doctor or other health care provider may order a creatinine test for the following reasons:

  • To make a diagnosis if you have signs or symptoms of kidney disease
  • To screen for kidney disease if you have diabetes, high blood pressure or other conditions that increase the risk of kidney disease
  • To monitor kidney disease treatment or progression
  • To monitor for side effects of drugs that may include kidney damage or altered kidney function
  • To monitor the function of a transplanted kidney

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A standard blood test is used to measure creatinine levels in your blood (serum creatinine). Your doctor may ask you not to eat (fast) overnight before the test.

For a creatinine urine test, you may need to collect urine over 24 hours in containers provided by the clinic.

For either test, you may need to avoid eating meat for a certain period before the test. If you take a creatine supplement, you'll likely need to stop use.

What you can expect

For a serum creatinine test, a member of your health care team takes a blood sample by inserting a needle into a vein in your arm.

For a urine test, you’ll need to provide a single sample in the clinic or collect samples at home over 24 hours and return them to the clinic.

Results from creatinine in blood or urine are measured and interpreted in many ways, including the following:

Serum creatinine level

Creatinine usually enters your bloodstream and is filtered from the bloodstream at a generally constant rate. The amount of creatinine in your blood should be relatively stable. An increased level of creatinine may be a sign of poor kidney function.

Serum creatinine is reported as milligrams of creatinine to a deciliter of blood (mg/dL) or micromoles of creatinine to a liter of blood (micromoles/L). The typical range for serum creatinine is:

  • For adult men, 0.74 to 1.35 mg/dL (65.4 to 119.3 micromoles/L)
  • For adult women, 0.59 to 1.04 mg/dL (52.2 to 91.9 micromoles/L)

Glomerular filtration rate (GFR)

The measure of serum creatinine may also be used to estimate how quickly the kidneys filter blood (glomerular filtration rate). Because of variability in serum creatinine from one person to another, the GFR may provide a more accurate reading on kidney function.

The formula for calculating GFR takes into account the serum creatinine count and other factors, such as age and sex. A GFR score below 60 suggests kidney disease. The range of scores below 60 may be used to monitor treatment and disease progression.

Creatinine clearance

Creatinine clearance is a measure of how well the kidneys filter creatinine out of the bloodstream for excretion in urine.

Creatinine clearance is usually determined from a measurement of creatinine in a 24-hour urine sample and from a serum sample taken during the same time period. However, shorter time periods for urine samples may be used. Accurate timing and collection of the urine sample is important.

Creatinine clearance is reported as milliliters of creatinine per minute per body surface area (mL/min/BSA). The typical range for men, 19 to 75 years old, is 77 to 160 mL/min/BSA.

The typical range, by age, for creatinine clearance in women is as follows:

  • 18 to 29 years: 78 to 161 mL/min/BSA
  • 30 to 39 years: 72 to 154 mL/min/BSA
  • 40 to 49 years: 67 to 146 mL/min/BSA
  • 50 to 59 years: 62 to 139 mL/min/BSA
  • 60 to 72 years: 56- to 131 mL/min/BSA

Standard measures have not been determined for older adults.

Results lower than the typical range for your age group may be a sign of poor kidney function or conditions that affect blood flow to your kidneys.

Albumin/creatinine ratio

Another interpretation of urine creatinine count is called the albumin/creatinine ratio. Albumin is a protein in blood. Healthy kidneys generally don't filter it out of the blood, so there should be little to no albumin found in the urine.

Albumin/creatinine ratio describes how much albumin is in a urine sample relative to how much creatinine there is. The results are reported as the number of milligrams (mg) of albumin for every gram (g) of creatinine. Results indicating a healthy kidney are:

  • For adult men, less than 17 mg/g
  • For adult women, less than 25 mg/g

A higher than typical result may be a sign of kidney disease. In particular, the result may indicate a complication of diabetes called diabetic nephropathy, or diabetic kidney disease.

Your doctor or other health care provider will discuss the results of a creatinine test with you and help you understand what the information means for a diagnosis or treatment plan.

  • Creatinine. American Association for Clinical Chemistry. https://labtestsonline.org/understanding/analytes/creatinine/tab/glance/. Accessed Dec. 2, 2015.
  • Inker LA, et al. Assessment of kidney function. http://www.uptodate.com/home. Accessed Dec. 2, 2015.
  • Kidney disease of diabetes. National Institute of Diabetes and Digestive and Kidney Diseases. http://www.niddk.nih.gov/health-information/health-topics/kidney-disease/kidney-disease-of-diabetes/Pages/facts.aspx. Accessed Dec. 2, 2015.
  • Rohren CH (expert opinion). Mayo Clinic, Rochester, Minn. Dec. 4, 2015.
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The Victims of U.S. Nuclear Testing Deserve More Than This

In a historical photo, an American flag flies over a hospital in a rural setting.

By W.J. Hennigan

Mr. Hennigan writes about national security issues for Times Opinion.

The men and women came to Capitol Hill last week bearing surgical scars, lengthy medical histories and fading photographs of loved ones long dead. They came from across the country to walk the halls of Congress and show lawmakers the human cost of the U.S. nuclear weapons program.

They call themselves “downwinders” — a global community of people who lived near nuclear testing sites. In America, more than 100 nuclear devices were exploded in aboveground tests in New Mexico and Nevada between 1945 and 1962. For decades, members of the communities near those sites, as well as others involved in weapons production, have endured rare cancers, autoimmune disorders and other illnesses. But only some have been compensated by the federal government for what they’ve gone through.

The downwinders who visited Washington last week are not currently eligible for federal assistance because they don’t live within the one of the designated areas in Utah, Nevada and Arizona covered under the Radiation Exposure Compensation Act, known as RECA. The 1990 legislation has provided billions of dollars to people exposed to harmful radiation during U.S. nuclear tests or while mining uranium. But many affected communities, including those in southern New Mexico where J. Robert Oppenheimer’s team conducted the first atomic blast in 1945, were left off the list.

They have been fighting to be included under the law. Now RECA is to expire on June 7, bringing an end to the program altogether. A bill currently stalled in Congress would extend the law and expand compensation to nearly all Americans whose documented health struggles are linked to the nuclear weapons program. The White House supports it. The Senate passed it in a rare bipartisan vote, 69 to 30, in March.

But for the past two months, Speaker Mike Johnson has refused to allow a House vote on the Senate bill. As of Wednesday, there will be just seven working days left in Congress before RECA runs out, cutting off compensation and health screenings to all affected communities.

The federal government is responsible for protecting its citizens. Washington betrayed that obligation when it exposed people to dangerous radiation for decades during the Cold War, and then downplayed, denied and ignored the health risks , according to declassified documentation. American downwinders have paid for this neglect; now they’re simply asking their government for restitution.

This article is part of the Opinion series At the Brink , about the threat of nuclear weapons in an unstable world. Read the opening piece here .

Consider the costs borne by people like Bernice Gutierrez , 78, who was 8 days old when the world’s first atomic bomb exploded in July 1945 at the Trinity site, about 35 miles west of her hometown, Carrizozo, N. M.

None of the nearly 500,000 people who resided within a 150-mile radius of the blast were warned. The explosive yield of the Trinity test was 21 kilotons — almost 1.5 times larger than the Hiroshima bomb — sending a mushroom cloud more than 35,000 feet into the sky. Witnesses said ash rained down in New Mexico for days. Like snowfall, it tumbled into water cisterns, open windows, crop fields and grazing pastures.

In the years since, 29 members of Ms. Gutierrez’s family have been diagnosed with various types of cancer. Several have died, including her son Toby Jr., who died of leukemia when he was 56. Her daughter, Jeanne, is currently being treated for thyroid cancer. Ms. Gutierrez had her thyroid removed on the advice of her physician because, the doctor told her, a positive cancer diagnosis was all but certain. “We don’t ever ask if we’re going to get it,” she said, “We wonder when.”

Around the world, thyroid disorders are among the most widespread health impacts of nuclear fallout and contamination. The thyroid absorbs a radioactive form of iodine called I-131, a byproduct of nuclear fission used in a nuclear test, which concentrates inside the gland and can lead to increased risk of thyroid disease. While it’s impossible to connect any one person’s cancer diagnosis directly to radiation exposure from the test, the National Cancer Institute estimates that between 11,000 and 212,000 cases of thyroid cancer across the country are linked to exposure to radioactive fallout from aboveground nuclear tests in Nevada.

In New Mexico, a 2010 Centers for Disease Control study noted that radiation levels near some homes in the area of the Trinity test site reached almost 10,000 times what is currently allowed in public areas. It also pointed out that radioactive debris from the test had drifted across a region about 100 miles long and 30 miles wide. More recent studies have shown that the fallout from the test was carried on the wind much further — to 46 states, Canada and Mexico. “Our government took advantage of the fact that we knew nothing about radiation,” Ms. Gutierrez said. “We knew nothing about the cause and effect of it.”

To qualify for downwinder benefits under RECA today, you must prove you lived in one of roughly 20 counties for at least two years between Jan. 21, 1951 and Oct. 31, 1958, when aboveground testing at the Nevada site was most active, or during the month of July 1962, when a 104-kiloton explosion there displaced 12 million tons of sand and rock, hurling much of it into the atmosphere before it returned to earth as dust and rain.

Additionally, you must have been diagnosed with one of 19 types of cancer that the government has determined are related to the nuclear program. If you check all the boxes, you can receive $50,000. In the three decades since the law took effect, only 41,200 claims have been approved , paying out some $2.6 billion. In comparison, more than 65,000 claimants have received around $20 billion under the 9/11 Victim Compensation Fund .

The new bill would expand eligibility for compensation to certain uranium miners and widen the current list of recognized affected areas, to include Colorado, Idaho, Montana, New Mexico, Missouri, Guam as well as other communities. It would also increase compensation to up to $100,000 per person, both retroactively and for new claimants.

In the fall, the Congressional Budget Office put the expected cost of RECA’s expansion at more than $140 billion over 10 years, but sponsors have since revised the bill, bringing the cost down, they say, closer to $50 billion. Utah’s senators, Mike Lee and Mitt Romney, both Republicans, objected to that lower price tag and some other aspects of the bill, according to statements from their offices. Last month they introduced competing legislation that would simply extend the existing RECA law two years — without expanding coverage to include people like Ms. Gutierrez.

Their fiscal objections are surprising, given that both lawmakers are boosters of the U.S. military’s plan to build hundreds of nuclear-tipped intercontinental ballistic missiles, one of the most expensive weapons projects in Air Force history which also promises some 4,000 new jobs in the senators’ home state. The Air Force recently notified Congress that the missile-building program has exceeded its initial cost projections by at least 37 percent, to more than $130 billion .

Downwinders say it’s duplicitous to fund a nuclear weapon program that’s part of the emerging global arms race while refusing to treat the victims of the first one. The reason we know nuclear weapons work is because of the Cold War testing, says Mary Dickson, who was raised in Salt Lake City, about 350 miles from the Nevada test site, where the United States conducted tests until 1992. Those communities played a vital role in building the United States into the world’s sole superpower, only to be neglected later.

Ms. Dickson and her family lived north of the current RECA boundaries during the testing years. But at 29, she was diagnosed with thyroid cancer. Years later, her sister, Ann Dickson DeBirk, died at age 46 after a long struggle with an autoimmune disease. A second sister was also diagnosed with stomach cancer, while a third suffers from autoimmune disorders.

In Washington last week, a small group met with Mr. Johnson to make one last-ditch effort to persuade him and the rest of Congress to repay their sacrifice. Some came for the first time, selling off personal items to pay for the trip. Others, like Ms. Dickson, make regular pilgrimages to Congress to raise awareness about what the U.S. government did — and didn’t do.

For 30 years, she’s been urging voters to pressure their congressional representatives to pay attention to the downwinders’ plight. “I was lucky I got better,” Ms. Dickson told a small crowd gathered outside the Capitol. “My cousin, who lost her husband to colon cancer, always says to me, ‘Your story didn’t end tragically, so you can carry that tragic story forward.’ I have felt an intense obligation to seek justice for all of them.”

It’s time for Congress to correct this mistake. It should not be an option to leave thousands of Americans without lifesaving health screenings and compensation. Mr. Johnson should let the House vote on extending and expanding RECA — and our lawmakers should vote yes. These Americans have waited for too long.

This Times Opinion series is funded through philanthropic grants from the Carnegie Corporation of New York , the Outrider Foundation and the Prospect Hill Foundation . Funders have no control over the selection or focus of articles or the editing process and do not review articles before publication. The Times retains full editorial control.

The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips . And here’s our email: [email protected] .

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W.J. Hennigan writes about national security, foreign policy and conflict for the Opinion section.

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Statement on the Financial Innovation and Technology for the 21st Century Act

Chair Gary Gensler

Chair Gary Gensler

May 22, 2024

Introduction

For 90 years, the federal securities laws have played a crucial role in protecting the public. These critical protections were created in the wake of the Great Depression after many Americans suffered the consequences of inadequately regulated capital markets. We saw sky-high unemployment, bread lines, and shantytowns springing up due to mass foreclosures.

Back then, the rules didn’t exist. That’s why President Roosevelt and Congress created the SEC and the laws it administers.

At their core is the critical concept of registering securities that will be offered to the public and registering the intermediaries that facilitate the exchange of those securities. For securities, registration means that issuers provide robust disclosures and are liable if their material statements are untruthful. For intermediaries, registration brings with it rulebooks that prevent fraud and manipulation, safeguards against conflicts of interest, proper disclosures, segregation of customer assets, oversight by a self-regulatory organization, and routine inspection by the SEC.

Today, these rules do exist.

Many market participants in the crypto industry, however, have shown their unwillingness to comply with applicable laws and regulations for more than a decade, variously arguing that the laws do not apply to them or that a new set of rules should be created and retroactively applied to them to excuse their past conduct. Widespread noncompliance has resulted in widespread fraud, bankruptcies, failures, and misconduct. [1] As a result of criminal charges and convictions, some of the best-known leaders in the crypto industry are now in prison, awaiting sentencing, or subject to extradition back to the United States.

The SEC, during both Republican and Democratic Administrations, has allocated enforcement resources to holding crypto market participants accountable. Courts have time and again agreed with the SEC, ruling that the securities laws apply when crypto assets or crypto-related investment schemes are offered or sold as investment contracts. [2]

The Financial Innovation and Technology for the 21st Century Act

The Financial Innovation and Technology for the 21st Century Act (“FIT 21”) would create new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, putting investors and capital markets at immeasurable risk.

First, the bill would remove investment contracts that are recorded on a blockchain from the statutory definition of securities and the time-tested protections of much of the federal securities laws.

Further, by removing this set of investment contracts from the statutory list of securities, the bill implies what courts have repeatedly ruled – but what crypto market participants have attempted to deny – that many crypto assets are being offered and sold as securities under existing law.

Second, the bill allows issuers of crypto investment contracts to self-certify that their products are a “decentralized” system and then be deemed a special class of “digital commodities” and thus not subject to SEC oversight. Whether something is a “digital commodity” would be subject to self-certification by “any person” that files a certification. The SEC would only have 60 days to review and challenge the certification that a product is a digital commodity. Those that the SEC successfully challenges would be re-classified as restricted digital assets and subject to the bill’s lighter-touch SEC oversight regime that excludes many core protections. There are more than 16,000 crypto assets that currently exist. Given limits on staff resources, and no new resources provided by the bill, it is implausible that the SEC could review and challenge more than a fraction of those assets. The result could be that the vast majority of the market might avoid even limited SEC oversight envisioned by the bill for crypto asset securities.

Third, the bill’s regulatory structure abandons the Supreme Court’s long-standing Howey test that considers the economic realities of an investment to determine whether it is subject to the securities laws. Instead, the bill makes that determination based on labels and the accounting ledger used to record transactions. It is akin to determining the level of investor protection based on whether a transaction is recorded in a notebook or a software database. But it’s the economic realities that should determine whether an asset is subject to the federal securities laws, not the type of recordkeeping ledger. The bill’s result would be weaker investor protection than currently exists for those assets that meet the Howey test.

Fourth, for those crypto investment contracts that would still fall under the SEC’s remit, the bill seeks to replace Roosevelt’s investor protection framework with fewer protections than investors are afforded in every other type of investment. Doing so increases risk to the American public.

Fifth, the bill specifically excludes crypto asset trading systems from the definition of an exchange and thus removes, for investors on crypto asset trading platforms, the protections that benefit investors on registered exchanges. These crypto trading platforms would be able to legally comingle their functions in a way that fosters conflicts of interest, may allow trading against their customers, and reduces custody protections for their customers.

Sixth, the legislation creates an exemption from regulation under this Act for any entity or organization that falls under a broadly defined category called “Decentralized Finance.” Any number of firms would qualify for the exemption, regardless of potential conflicts of interest. This would include firms that intermediate crypto securities transactions.

Finally, the bill could be read to functionally eliminate the current Regulation A and Regulation D offering restrictions for crypto securities by creating a new exempt offering framework. Non-accredited investors would be allowed to purchase crypto assets worth up to 10 percent of their net worth or annual income before the issuer would be required to provide any disclosure. That’s a lot of risk for ordinary investors to take on without disclosure.

Risks to the Broader Capital Markets

The self-certification process contemplated by the bill risks investor protection not just in the crypto space; it could undermine the broader $100 trillion capital markets by providing a path for those trying to escape robust disclosures, prohibitions preventing the loss and theft of customer funds, enforcement by the SEC, and private rights of action for investors in the federal courts. It could encourage non-compliant entities to try to choose what regulatory regimes they wish to be subjected to – not based on economic realities, but potentially based on a label.

What if perpetrators of pump and dump schemes and penny stock pushers contend that they’re outside of the securities laws by labeling themselves as crypto investment contracts or self-certifying that they are decentralized systems? The SEC would only have 60 days to contest their self-certification.

History has shown for 90 years that robust securities regulation both creates trust in markets and fosters innovation. There are countless examples of American companies across many industries that have made world-changing innovations while also registering their securities. It is through the securities laws that we get full, fair, and truthful disclosure that arms investors with the information they need to make investment decisions and enables regulators to guard against the types of fraud we’ve seen in the crypto field.

The crypto industry’s record of failures, frauds, and bankruptcies is not because we don't have rules or because the rules are unclear. It’s because many players in the crypto industry don’t play by the rules. We should make the policy choice to protect the investing public over facilitating business models of noncompliant firms.

[1] See Chainalysis, “2024 Crypto Crime Trends: Illicit Activity Down as Scamming and Stolen Funds Fall, But Ransomware and Darknet Markets See Growth” (Jan. 18, 2024), available at   https://www.chainalysis.com/blog/2024-crypto-crime-report-introduction/ (Independent analysts found more than $24 billion in crypto assets transferred via illicit computer addresses, almost $15 billion of which were from U.S.-sanctioned computer addresses); See also Khristopher J. Brooks, CBS News, “Cryptocurrency fraud is now the riskiest scam for consumers, according to BBB” (March 6, 2024), available at https://www.cbsnews.com/news/crypto-scam-risk-bbb-report/ (Retail investor fraud in crypto is rampant. Eighty percent of individuals targeted by crypto scams lost money, with 67,000 scams with a median amount lost of $3,800, according to data from the Better Business Bureau); See also Federal Bureau of Investigation, “Internet Crime Report 2023,” available at https://www.ic3.gov/Media/PDF/AnnualReport/2023_IC3Report.pdf (Approximately $3.94 billion in crypto assets was stolen in scams in 2023.).

[2] See , e.g., SEC v. Coinbase, Inc ., 2024 U.S. Dist. LEXIS 56994, at *3, *43 (S.D.N.Y. Mar. 27, 2024) (explaining that “the challenged transactions fall comfortably within the framework that courts have used to identify securities for nearly eighty years");  SEC v. Genesis Glob. Capital, LLC , No. 23-cv-00287 (ER), 2024 U.S. Dist. LEXIS 44372, at *44-45 (S.D.N.Y. Mar. 13, 2024) (“Under both  Howey  and Reves, the SEC has plausibly alleged that Defendants offered and sold unregistered securities through the Gemini Earn program.”);  SEC v. Wahi , No. 2:22-cv-01009-TL, 2024 U.S. Dist. LEXIS 36788, at *21 (W.D. Wash. Mar. 1, 2024) (holding that, “under  Howey , all of the crypto assets that Ramani purchased and traded were investment contracts,” including to the extent that the assets were traded on the secondary market);  SEC v. Terraform Labs Pte. Ltd. , No. 23-cv-1346 (JSR), 2023 U.S. Dist. LEXIS 230518, at *43 (S.D.N.Y. Dec. 28, 2023) (stating that “ Howey’s  definition of ‘investment contract’ was and remains a binding statement of the law, not dicta” and finding that “[t]here is no genuine dispute that the elements of the  Howey  test – ‘(i) investment of money (ii) in a common enterprise (iii)with profits to be derived solely from the efforts of others’ [ ] have been met for UST, LUNA, wLUNA, and MIR [the crypto assets at issue]”);  SEC v. Ripple Labs, Inc. , 20-cv-10832 (AT), 2023 U.S. Dist. LEXIS 120486, at *19-20 (S.D.N.Y. July 13, 2023) (rejecting defendants’ argument that, in addition to satisfying the  Howey  test, all investment contracts must contain certain additional "essential ingredients" and finding that Ripple’s institutional sales of its XRP crypto token constituted the unregistered offer and sale of investment contracts and therefore securities);  SEC v. Terraform Labs Pte. Ltd. , No. 23-cv-1346 (JSR), 2023 U.S. Dist. LEXIS 132046, at *21-22 (S.D.N.Y. July 31, 2023) (rejecting argument that the Major Questions Doctrine “prevent[s] the SEC from alleging the company's digital assets to be ‘investment contracts’” and explaining that “Defendants cannot wield a doctrine intended to be applied in exceptional circumstances as a tool to disrupt the routine work that Congress expected the SEC and other administrative agencies to perform.”);  SEC v. LBRY, Inc. , 639 F. Supp. 3d 211, 221–22 (D.N.H. 2022) (granting summary judgment for SEC and rejecting fair notice defense, explaining that “[t]he SEC has not based its enforcement action here on a novel interpretation of a rule that by its terms does not expressly prohibit the relevant conduct. Instead, the SEC has based its claim on a straightforward application of a venerable Supreme Court precedent that has been applied by hundreds of federal courts across the country over more than 70 years.”);  SEC v. NAC Found., LLC , 512 F. Supp. 3d 988, 994 (N.D. Cal. 2021) (denying motion to dismiss and noting that motion “falls well short of demonstrating that the SEC's characterization of ABTC as a ‘security’ is implausible for pleading purposes”);  SEC v. Kik Interactive Inc. , 492 F. Supp. 3d 169, 174, 182–84 (S.D.N.Y. 2020) (granting SEC summary judgment on grounds that Kik offered digital currency Kin as a security);  SEC v. Telegram Grp. Inc. , 448 F. Supp. 3d 352, 371 (S.D.N.Y. 2020) (granting the SEC’s motion for a preliminary injunction notwithstanding Telegram’s argument that investors “bought Grams with the expectation to use them as currency” and not “with an expectation of profit”).

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