Enrollment in foreign languages at B. A. -granting institutions in the United States has been increasing dramatically in recent decades' (see, for example, Brod, 1988). Recent studies and commissions have recommended more language study at all levels of schooling, and universities have offered new opportunities for students to pursue international careers through interdisciplinary studies. Increases in foreign language study have also evolved through strengthening of school and college language requirements (see Brod and ILapointe, 1989). Large state institutions may be especially vulnerable to a myriad of problems brought about by burgeoning enrollments in foreign language. Computer registration has decreased informal advising and counseling for placement. At large institutions, such as the University of Iowa, placement tests are administered to a great number of students during a one-hour period. The results are required for placement decisions within hours of the test administration. Developing and administering tests for placement and assessment of large numbers of foreign language students is a major undertaking. In addition, with increased enrollments, teacher training and testing of foreign language teachers has become an even greater responsibility. The creation of the ACTFL Oral Proficiency Interview (OPI) has offered a form of oral testing intended for the college setting, yet the OPI has been criticized as being limited in the type of discourse elicited. (See, for example, Barnwell, 1980; Valdes, 1989; Bachman and Clark, 1987; and Lantolf and Frawley, 1985). Furthermore, the OPI training demands considerable expenditure of money and time. These financial and time constraints make such oral testing feasible only at critical junctures or for borderline cases in placement. Machine-scored tests of listening comprehension and reading are promising modes in which ACTFL has made little progress to date. Tape-recorded speaking tests, writing correction tests, and dictations may also prove to be useful for placement testing in foreign languages. Tape-recorded speaking tests can be graded more efficiently than the OPI and they still collect a speech sample; writing correction tests can be done in a multiple-choice format allowing for machine-scored grading; and dictation can be quickly graded by counting each word as either right or wrong. Several institutions have refined placement procedures that are not based on seat time, for example, the University of Arizona (Schultz, 1988), Brigham Young University (Larson, 1989), the University of Minnesota (Lange, 1987), the University of Pennsylvania (Freed, 1987), the University of South Carolina (Mosher, 1989). Nevertheless, recent surveys have shown that foreign language placement testing procedures are neither systematic nor satisfactory for most institutions. (Wherritt and Cleary, 1990; Klee and Rogers, 1989). Commercially available tests have had three critical problems: availability only in predetermined difficulty levels, limitations to discrete-point testing, and the large expense associated with purchase of test booklets. This paper reports on the development and field test of an item bank developed at the University of Iowa for placement and assessment of language students.