According to "Ripley's Believe It Or Not," at one point, the word quiz came about as the result of a bet.
In 1791, a man named James Daly, who was manager of the Dublin Theater (or in some stories a pub owner), made a bet that within 24 hours he could introduce a new word into the English language that had no meaning. Within the allotted time period, walls and other public spaces around Dublin had the four mysterious letters Q-U-I-Z chalked on them. This was Daly's new nonsensical word. The next day the word was on everyone's lips, and people were curious to know its meaning, saying to each other, "Quiz? Quiz? What does it mean?" Daly won his bet — and the word has remained in our language to this day.
This is a great story, which is why it has ingrained itself so deeply in the lore of the English language. The problem with the story, however, is that it can't be true. Why? First, there is absolutely no evidence to support it. Second, and much more important, the word quiz, which this story says was invented in 1791, had already been in print. It can be traced back to at least June 24, 1782. On that day, Frances Burney (aka Fanny Burney) made the following entry into her diary: "He's a droll quiz, and I rather like him." This predates Daly's bet. Also, one might assume that since she used the word, she did not make up it that day. Hence, as early as 1782 the word was being used. In her diary, it is used as meaning "odd."
By 1811, the word had become quite popular. So popular, in fact, that Jane Austen included it seven times in her novel Northanger Abbey. Here's one of those instances (and the context in which it appears), when John Thorpe uses the word in talking to Catherine at a dance:
The others walked away, John Thorpe was still in view, and she gave herself up for lost. That she might not appear, however, to observe or expect him, she kept her eyes intently fixed on her fan; and a self-condemnation for her folly, in supposing that among such a crowd they should even meet with the Tilneys in any reasonable time, had just passed through her mind, when she suddenly found herself addressed and again solicited to dance, by Mr. Tilney himself. With what sparkling eyes and ready motion she granted his request, and with how pleasing a flutter of heart she went with him to the set, may be easily imagined. To escape, and, as she believed, so narrowly escape John Thorpe, and to be asked, so immediately on his joining her, asked by Mr. Tilney, as if he had sought her on purpose!—it did not appear to her that life could supply any greater felicity.
Scarcely had they worked themselves into the quiet possession of a place, however, when her attention was claimed by John Thorpe, who stood behind her. "Heyday, Miss Morland!" said he. "What is the meaning of this? I thought you and I were to dance together."
"I wonder you should think so, for you never asked me."
"That is a good one, by Jove! I asked you as soon as I came into the room, and I was just going to ask you again, but when I turned round, you were gone! This is a cursed shabby trick! I only came for the sake of dancing with you, and I firmly believe you were engaged to me ever since Monday. Yes; I remember, I asked you while you were waiting in the lobby for your cloak. And here have I been telling all my acquaintance that I was going to dance with the prettiest girl in the room; and when they see you standing up with somebody else, they will quiz me famously."