Correct way to hold a steering wheel?

There is no "CORRECT' method of steering. Years ago, a requirement of holding the steering wheel at 10 and 2 o'clock was stressed. Today, most safety experts recommend a lower arm position - at 8 and 4 o'clock. That way, your arms are closer in to your sides and can protect your face in the event of air bag deployment. DMV examiners do NOT score hand positions at all. They are more concerned with how you control the car and if you're "tracking" straight.