Most courses I've taken have obligatory assignments that are pass/fail, and you have to pass a certain amount during the semester to take the final exam. But the grade is determined entirely of the final exam.

Which to me seems the best way, you still have to learn throughout the year. Especially to avoid cheating this works nice. And as an aside, most people I know that did a year abroad in the US got 1-2 grades higher, as it was quite easy to just farm extra credits.

It has been my observation that most of the better students were the ones who would not put in work during the semester/year and cram at the end.