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The Chunin Exams are an event held in the Hidden Leaf where Genin from the Hidden Leaf and other villages go through a series of tests and practical examinations in order to be considered for advancement to the Chunin rank.
Stages Stage 1
An extremely difficult written exam is given to the candidates with a warning that failing the exam will permanently bar a person form ever becoming a Chunin, but if you refuse to take the test you are allowed to reapply during the next testing period. Chunin are placed in the testing area and the actual purpose of the test is to examine the Genin's ability to make wise choices and be deceptive by cheating off of the secret Chunin and not getting caught by the instructors.
Stage 2This stage a practical exam that takes place in the Forest of Death, a location filled with many dangerous creatures. Each team of Genin are given 1 of 2 scrolls and told that they must obtain a complete set of scrolls within a specific time period or they fail. There are no rules or code of conduct outside of not looking inside the scroll and it is not uncommon for Genin to die during this stage of the exam. If too many Genin pass this stage, a preliminary round of 1 vs 1 battles is held immediately after to thin the numbers.
Stage 3The third and final round consists of 1 vs 1 battles where the genin are told who there opponents are and are given time to train and research their opponent.
PurposeThe Chunin Exam holds two purposes. The first is to find qualified candidates to become Chunin but more important, it serve as a way for countries to publicly display the quality of their ninja. The performance of the candidates reflects on the quality of the village, which impacts what village will be requested to do what ninja missions. Missions are the lifeblood of the economy in a Hidden Village and the Chunin Exam can make or break a country for the fiscal period lasting until the next exam.