This is probably the best known software that allows users create interactive exercises. It is the one I use more often with my students not only because they actually enjoy doing this type of exercises but also because I have feedback on their performance.
The Hot Potatoes software includes six applications: multiple-choice, short-answer, jumbled-sentence, crossword, matching/ordering and gap-filling. Hot Potatoes is free of charge for those working for publicly-funded non-profit-making educational institutions, who make their pages available on the web.
You have to register to use it.
http://hotpot.uvic.ca/
