Categories allow you to organize questions in the Question Bank. At the Top level of the category structure is Moodle’s Default for [course name] category. Additionally, each time you create a new quiz, Moodle creates a Default for [Quiz name] category at the Top level. We STRONGLY recommend you NOT use the Default for [Quiz name] category.
Instead, create your own “Quiz XX” category at the Top level and use it to store questions. There is no limit to the number of categories or questions within a Top level category.
Using the Default for [Quizname] category limits your ability to reuse its questions in other quizzes. They are only accessible from the Edit Quiz page for that quiz. No other quiz can use these questions. For details on why you should create your own quiz categories, see Move Questions to a Different Question Bank Category.
Adding categories to the Question Bank
Go to the course site home page.
Find the Administration block:
Click Question bank, then Categories.
Expand the Add category section, if necessary:
Choose Top (preferred) from the Parent category menu. All categories at the Top level will be visible. You can make your new category a subcategory of an existing one if you want.
Enter a Name (required).
Enter Category Info (optional).
Click Add category.
Repeat steps 4-6 for additional categories.
When you're done, navigate back to the course homepage.