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The use of the term Prelim (short for preliminary examination) generally refers to an examination that qualifies a student to continue studies at a higher level, and/or allow the student to comprehend their studies and see how prepared they are for an upcoming examination. It can also act as a gauge on how knowledgeable one is within the chosen subject.
Prelim exams may pre-date the qualifying exam at some institutions, although some universities combine both concepts into one exam.