A quiz is a form of game or puzzle in which the players (as individuals or in teams), attempt to answer questions correctly.
It's a fun story. Unfortunately, there is absolutely no evidence to support it and the term was in use before the alleged bet in 1791.
The first appearance of the word is from 1782 and means an odd person. This sense survives today in the word "quizzical". It later acquired a meaning of to make fun of, or to mock. How it acquired its current meaning of a test is unknown, but that sense did not appear until 1867 and then it was in the United States.
The OED2 has a cite from 1847 where the word appears: "She com back and quiesed us," which could be a clue to its origin. Quiz as a test could be a corruption of the Latin Qui es, meaning "Who are you?" American Heritage says it may be from the English dialect verb quiset, meaning to question. In any case it is probably from the same root as question and inquisitive.
There are also many online quizzes, many webmasters have quiz sections on their websites and forums, phpBB2 has one MOD (Modification) which allows users to submit quizzes, this is the Ultimate Quiz MOD.
Most of the online quizzes are to be taken lightly. The results don't reflect the true personality or relationship. What they do is to make the quiz taker question his/her personality and relationships. One can also find out about one's love life with quizzes. Consider a quiz like a question session, where the answers given by you make you think.
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