I read on the moodle webpage:
Embedded answers (Cloze) questions consist of a passage of text (in Moodle format) that has various answers embedded within it, including multiple choice, short answers and numerical answers.
I have used cloze questions before but they were basically a paragraph with fill in the blank sections. Can someone give me a link to some cloze questions so that I can understand them by example?
My understanding is that Cloze is a fancy name for gap fill exercises an as such they can be paragraphs with fill in the blank but can also have gaps of other types too. The docs gives more info here but basically in a Moodle quiz there are various ways to go about creating a cloze question - which frankly I have tried but find less user friendly than simply making it in HotPotatoes J-Cloze.