Exam questions test insight, not memorization. They assume active reading and thinking about the material.
If for example you encounter a statement in the reading which puzzles you, don't just skip it--ask me or the TA about it. An exam question may later ask you to explain it.
Also, many some exam problems will be inspired by the answers I give to questions students ask during lecture, or may be related to remarks I make during lecture along the lines of ``I want you to think about the following point carefully at home...'' Therefore, listen carefully to questions students ask in class, and to the answers I give. Make a note of seemingly-casual comments I make in lecture, and think about them carefully at home.