So far, all of our exams have been 1/2 multiple choice, and 1/2 practical. In Gross Anatomy, the practical involved identifying tagged structures, in histo we had to identify cell/tissue types, and for our clinical skills course, we perform exams on standardized patients while a physician evaluates our team.
Personally, I think this system works pretty well. It makes sure that we have learned information and also know how to apply it.