My CS exams in Europe and Australia involved calculations, proving stuff and applying knowledge to find the solution without a list of possible answers. Multiple choice questions at this level have always confused me and seemed like a really inept way of testing understanding (if they test understanding at all). I was fully expecting to see an implementation of a red-black tree, the use of software patterns, question…
The main benefit of multiple-choice is that grading is instant. There is no ambiguity, no half points.
I completely agree that tests like this should not exist, but sadly they do. Even in Europe bachelor's courses seem to be slowly shifting towards this.