merits are that it generates competition among the students. this will encourage them to work harder. it is also a great medium to assess ones intelligence and capability. if a person tops in the examination, he/she becomes confident in himself or herself. examinations are a medium of indirect learning. exams play an important role in getting jobs.
demerits are that it creates a lot of stress among the students. sometimes a bright student also may be scared of exams and due to this fear, might not perform well in the exams. once he/she fails to perform well, he/she loses confidence in himself/herself. the person may get depressed. due to examinations, the curriculum remains limited and the students read only what is required. this interrupts in the education of the student.
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