Examinations are a way of testing the knowledge, information, learning and education level of an individual. The objective of good education is to teach and learn various different subjects about human life to students so that students grow up to become responsible and aware human beings. But education is a dynamic process. It changes with the requirements of time and also different students or individuals react to the same mode of education in different ways. So if the same lesson is taught to ten students they all will understand and grasp it in differing ways and levels. At the same time, teaching the same lesson may be relevant today, but may be irrelevant tomorrow. For example, today teaching car driving skills is very important. But tomorrow, with driver-less cars, this will be irrelevant. So the objective of a good education system is satisfied if the intended education and effect reaches all the students and that these learnings add value to their lives. The objective of examinations is to test whether or not this is being achieved and to what extent.
At School Examinations are of various types like two Term Exams, one at the end of each half year [also called a term]. In addition, there are also Unit Exams that evaluate small portions of education delivered. The Exams can be written Exams or Orally spoken Exams. In both these Exams the school management attempts to evaluate what proportion of its students are receiving the education that it is delivering and to what practical end.
At College level also similar Exam patterns are followed like Term Exams, Written Exams, Orally spoken Exams, Practical Exams, etc. The objectives of College education though are more career and profession focused. They are more focused on practical life goals. So the Exams are devised to simulate real life practical situations that the students will encounter in their professional lives.
In a more informal way, it can be said that Life itself tests us all through various Exams and challenges. There can be about health, finances, morality, etc. The most important is to be able to deal with these Life Exams.
Examinations are important to test your strengths and weaknesses.