It is shocking to most people when I tell them that I have exams in dance. It is not necessarily an exam, it is more like an evaluation that most dancers take every year.
Now, how do exams work?
Well, there are two parts: the actual dancing part, and the knowledge.
The dancing portion of the exam is basically you showing the skills you have learnt through a series of prayers and dances that your group has been working on. You typically perform this with your group who are in the same level as you. This part is treated exactly like a performance, the only exception is that you have to answer questions and you may redo a step if you messed up.
The knowledge part is like a test full of short answers. There are about seven options, you choose five and try to add as much detail as possible. There is no issue with this part, except the memorization.
It is said that the mind can fit five times as much as all of the information in wikipedia, but it is not easy. You create the essay and remember it and you have about three hours to write it on the paper.
The difference between an exam at school and an exam in dance is that you are allowed to speak to the people in your group during the exam, but you have to paraphrase so that you all do not end up with the same answer sheet.