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Best practice for using quizzes in Moodle is to add questions to the Question Bank first and then add them to the actual quizzes from the Question Bank. The first step is to create categories for organizing the questions. You might organize by topic, chapter or week, for example. This will guide will walk you through how to create a category in your course Question Bank in Moodle. Then you can add questions to the categories by creating them from scratch in the Question Bank (Moodle Doc) or uploading a formatted .txt file from instructions given from the "Quiz: Saving a Quiz as a .txt File for importing into Moodle" Article. 

  1. In the Moodle Course go to the "Administration" block and click on "Question Bank"
  2. Then click on the "Categories" under "Question Bank"
  3. Select the drop-down menu next to "Parent category:" Click "Top", to create a new parent category for the questions (e.g "Chapter 1")
  4. Select the drop-down menu and choose "Chapter 1" for the Parent Category and name the sub-category
  5. Go back to the "Administration" Block and click on "Import"
  6. Select "Aiken Format
    1. "Under "General", go to "Import Category" choose the preferred category
  7. Under "Import Questions from File", click on "Choose a File...", Find the formatted .txt file, 
  8. Rename the quiz next to "Save As"
  9. Click on "Upload this File"
  10. Click on "Import"
  11. Click "Continue"