No. This isn't a Naruto based ninja game.
The way it works is you don't need to train or anything: when you pass your initiation to be a ninja then you use scrolls to improve your ninja's abilities.
Your ninja skills increase from doing quests, and some of your attributes increase from doing various other actions, but for the most part your ninja grows stronger through scrolls.
When the game starts you go thru a small tutorial level. You've just finished training to be a ninja, you just have to prove you know how to use your skills. After that you are free to do whatever you like.. so nope. No exams.
That's not included yet.
I have the basis for it. If I add it basically it will be based on your contributions to your tribe. Missions you complete, things that you donate instead of using for yourself, etc.
also will players be able to create custom justus of their own?
Yes. Shops sell randomized jutsus based on elements available to their village. Villages can unlock additional elements by various other means in the game.
In addition you can purchase items called tickets, or find them as rare drops that will allow you to custom make ninpo and weaponry.
Better question, how do you go about obtaining a bijuu?
This isn't a game based on Naruto. There are no bijuus.
There are a few other things you can use in the form of summon spirits. Weapons have the ability to summon spirits that perform various actions and there might be actual spirits that follow you around and provide other perks(I haven't decided whether to add this in yet.)
Also to everyone who has mentioned hosting I have since set up port forwarding. I'm looking to host sometime soon I just have a new job and i worked this evening and tomorrow evening(sunday). Most likely it will be monday and tuesday.
Please leave a message on this thread and I will get in contact with you with the link.