I think exams that are meant to demoralize students should be banned (well... not banned but I guess, they should be at a minimum).
I took a class last quarter -- the most difficult class I've ever taken. The first exam, I thought I did okay but ended up scoring low. The second/final exam, I walked out of there completely struck with awe and complete shock, not really knowing how to feel except sadness and anxiety at the thought of failing an exam and a class (I completed 3 pages of short answer and essay questions *out of 6 pages* and I wasn't even sure if my answers were correct. The exam was 50 minutes long, and it required reading text to be able to answer the questions -- 1 page of single spaced non-sense text, and a 2nd page of analyzing molecular structure).
Each and every 4 hour lab from 5:30pm-9:20pm on Wednesday nights was stressful, on your feet the entire time, and constantly making dilutions, running assays, monitoring and analyzing experimental progress and data... -_- And it was always frustrating when something went wrong and you had to start all over again, being pressed for time at the very end..
I was so sad about this class. I seriously thought I failed -- the REAL FAIL... the F fail, not the B or C kind of fail. It was my first final exam last quarter -- I had 2 more final exams after it... But I was so demoralized coming out of that final exam that I had a difficult time focusing on studying for my other exams!!! >:(
Argh!! I wish I was spared all the anxiety, having been told that the curve would be generous! But I didn't believe other students who have taken the class that said "I'm sure you'll be fine. The curve is generous.. he can't fail everybody."
So yeah. Such demoralizing exams should be kept to a minimum.