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Testing is a great tool for both the student and the teacher as it provides insight into the students' progress. If used in excess, as I often experienced in the USA, course content can become more about a final evaluation than about the subject matter itself, leading to overall poor performance and a poor learning experience. However, if used correctly, testing is an invaluable tool that can help teachers refine their methods, go back and cover material a second time, or place students in a more appropriate course. Students also benefit from testing because it helps them understand what areas they need to review again.
