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senario question
Situational questions are most toughest questions. They offer a lot of detailed background information / scenario based problems to solve or correct answers to them to identify. They really put your PM knowledge to test for skills assessment. Often more than answer may seem correct and it's hard to identify the correct one avoiding the trap embedded. Ofcourse if your knowledge of Project management is very thorough with experiences you should be able to deal with them.
You've given a 3-5 lines of senario paragraph and needs to select the best answer to fit with the senario needs, for example, terminating the project could be the best answer in case if the project sponsor found out that the project will be very hard to be completed and all of the possible solutions have been used.
These are scenario based questions. They provide a lot of background information about a situation faced by a project manager and provide multiple correct or very close to be correct and ask you to choose one of these answers.
Such questions aim to test your problem solving skills based on the information provided in the PMBOK..