Definition: A high-stakes test is any test used to make important decisions about students, educators, schools, or districts, most commonly for the purpose of accountability—i.e., the attempt by federal, state, or local government agencies and school administrators to ensure that students are enrolled in effective schools and being taught by effective teachers. In general, “high stakes” means that test scores are used to determine punishments (such as sanctions, penalties, funding reductions, negative publicity), accolades (awards, public celebration, positive publicity), advancement (grade promotion or graduation for students), or compensation (salary increases or bonuses for administrators and teachers).
Pros: Test results may be used to determine whether students advance to the next grade level or whether they receive a diploma. For example, a growing number of states require students to pass a reading test to advance from third grade to fourth grade, while others require students to pass a test to graduate from high school. Cons: it might stress student and also teacher who cares a lot about those assessment
Example: in Gymnastics, gGrade 4 students are supposed to do a proper cart wheel (with a step by step movement), if they can't they can't go to the next session which is introduction to the handstand. (all students usually manage it because we have to keep in mind that PE should always be fun)