This is an another form of online tests where students can upload their answers after writing them on paper or typing them.
Click on it. You would get the following display
In this you would be able to Add title of the Assignment, Maximum Marks allocated for this, the File containing the question paper, Result declaration, Limit the number of attempts by your students, Making this a pre-requisite and add any general Instruction for it
File of upto 100 MB can be uploaded from your end of various formats such as pdf, word, zip file.
Your students would be able to upload a file of 200MB of Zip or pdf file. As a workaround if there isn't much of questions you can also type the questions in the General Instructions tab so that they can answer it directly. This isn't a general recommended practice but required results can be achieved using this.
Their uploaded answers can be viewed in their corresponding batches under Progress Report tab from where you would be able to download their submissions and evaluate it to grade their marks accordingly.