What is the resolution of a 12 bit DAC?

The resolution of a 12-bit Digital-to-Analog Converter (DAC) refers to the number of distinct output levels it can produce, which is determined by the number of bits. A 12-bit DAC can represent (2^{12}) or 4096 discrete values. This means it can convert a digital input into one of 4096 different analog voltage levels, providing a finer control over the output signal compared to DACs with fewer bits.