Tim, I learn something every day. Thanks.
I didn't realize that if questions are created within a Quiz, like Q1, that a category is created in the question bank. This category appears to become "private" to only this quiz. If I am at the course level and go to the question bank, I won't see the Q1 category.
I am going to have to think about this for awhile and figure out when this would be to my advantage. This seems to be a subtle feature of Moodle that could be powerful in the right situations. Interesting!