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It is an "aptitude test" (as opposed to an "achievement test"). It currently consists of an essay section, which requires two free-response essays of 30 minutes each; two multiple choice sections, one mathematical section and one verbal skills section, which consists of an analytical section, an English grammar section, and reading comprehension.
GMAT is typically pronounced "jee-mat."
See also: List of admissions tests, SAT college entrance test