Well, I think it's sort of a double-edged sword. Exams can be a good thing. They can separate the wheat from the chaf, per se. They can tell where some students need extra work, and whether or not a student can cut it in a certain advanced subject, or pass the grade.
Then again, some students - I have friends like this - aren't very good test takers. One friend, really smart (even smarter than me, probably), got a 17 on her ACT (a standardized test in America that judges your apptitude for college; equivocable to the SAT). A decent score on the ACT is a about a 23 or 24. The highest you can get is a 36. I got a 20 on my first try. Sometimes these tests can misjudge a student because he or she doesn't think in standardized test format.
My vote? Yes.