If everyone gets a great mark, then ranking is difficult. But now, since all of us can do that, we cannot use breathing for ranking purposes. Similarly, most of you were top students in your highschool classes, accustomed to success. Now, everyone is equally qualified and similarly bright, so the playing field is level again. When I think about creating a test, I begin by reviewing my lecture notes and related text material, and listing the concepts I have covered.
Facts are the details used to test for understanding.
They are important, but meaningful only in context. For example, if you are trying out for the local soccer team, you are having a practical test. Oral exams are particularly common in graduate school, where there are a series of questions about the student's research topic. Oral exams can be similar to job interviews. The latter include the classic university mid-term and final exams.