The use of multiple choice tests for assessment of students knowledge and progress is a subject of ongoing debate among educators and psychologists. The supporters of this method claim that this is the most objective and effective form of evaluation while the opponents argue that its results cannot be regarded as conclusive (Liu & Parker, 2002). Moreover, they say that in the vast majority of cases such approach is hardly justifiable. Therefore, there is growing necessity to discuss the benefits and drawbacks of multiple choice tests especially in comparison with other types of examinations. Although there is no agreement among scholars concerning this question, the popularity of standardized tests does not diminish and this is by far the most widespread technique currently employed in schools and colleges. There are several theories explaining why so many educators give preference to this approach. First, it practically eliminates the possibility of prejudice and subjectivity especially in contrast with viva voice or written exams. In part, this is the reason why students support its use. The second aspect which is very interesting is time-efficiency, because we are living in the age of mass education and classes may range from thirty to fifty people. Naturally, under some circumstances the process of grading may take a considerable amount of time, consequently teachers are often forced to employ this type of evaluation (Hoffmann, 1962). However, objectivity and time-efficiency are not the only advantages of multiple-choice items. In addition to that, they enable to cover a wide scope of material. With a help of a well-designed standardized test educators can assess students understanding of various topics or subtopics. Secondly, thorough analysis of common mistakes made by learners will outline the directions for remedial work (Popham, 2003). This goal can be achieved if items are presented clearly and there is no ambiguity. This diagnosis is usually made at preliminary or intermediate stages; it helps educators to ascertain the level of students readiness for a particular course. According to a widely-held opinion, multiple choice examinations can evaluate only mere knowledge of facts (Hoffmann, 1962). To some extent, this statement is quite grounded because very often teachers seek to gauge only memorizing of dates, events, numbers, or personalities without focusing on analysis, application of this information. Yet, this statement is grounded only in those cases, when instructors are unwilling or unable to construct more sophisticated items. This method offers good opportunity to study different cognitive skills. Possible drawbacks are mostly due to the inability to devise standardized tests. There are six levels of cognition: knowledge, comprehension, application, analysis, synthesis and evaluation (Bloom as cited in Woodford and Bancroft, 2005). Provided that they are effectively tailored, multiple choice items can measure all of these levels. The questions can address understanding of information, ability to apply it in various situations, critical thinking etc. But this requires appropriate phrasing and sequence of items. Judging from the above discussion, we can mark o