Nearly every course I took at a 300/400+ level was about demonstrating a fundamental understanding instead of strict memorization. Open-book tests were more common. And it went down from 150+ students to 20 or 4. Considering my degree is a b.a. in media arts, some senior courses had minimal or no testing at all and instead had large projects.
That said, perhaps one of the hardest classes I took was a 300 or 400 level one on Tarantino films, probably to weed out people who were just looking for an easy class. On top of demonstrating understanding through analysis via storyboarding or papers, the quizzes/tests had multiple choice of 5 answers, which always included "all of the above" or "none of the above", and short/long answers/prompts. You really had to have studied each lecture and actually have watched the relevant films. You wouldn't believe how many people didn't watch the films... in a film analysis class. But all of that aside, it was thoroughly interesting and memorable.