Categories are created in the question bank and are used to organise questions
Sorting questions into categories is especially important when random questions are used or a topic contains many quizzes
When a quiz delivers random questions, those questions must be stored in a dedicated category (or sub-category)
If you add a category before you add questions to the question bank, all questions created can be added to this category and they will then belong to the topic, rather than the quiz. This approach will make management easier when you are creating new quizzes using questions from previous quizzes.
Categories can be created within an existing category (ie a sub-category).
Steps
Go to Topic Management > Question > Category
Scroll down the screen (categories may already be listed, that you can edit) you will see the option Add category
Choose a Parent category from the pull-down list (defaulted to your topic name) – you are most likely to leave it at your topic name, but you could also add a sub-category within an already created category
Give the category a Name
Add Category info (optional)
Click ID number (optional)
Click Add category button
The new category should be listed under the relevant Parent category
Once created, you can also Edit categories (rename, add/change category info), delete, re-order and indent (make into a subcategory).