As part of the development of a functional literacy test for fourth through eighth grade children in Title I compensatory education programs, this report enumerates a set of criteria for selecting appropriate tests. The criteria are grouped into six categories: (1) test background; (2) psychometric quality; (3) examinee appropriateness; (4) normative standards; (5) administrative usability; and (6) interpretation. The six tests reviewed as potential instruments are the Adult Performance Level Test, Basic Reading Skills Mastery Test, Fundamental Achievement Series, National Assessment of Educational Progress, New York State Basic Competency Test, and Reading/Everyday Activities in Life. None of these tests meets all the criteria. Alternative solutions proposed include developing a new test, or constructing a test using parts of existing instruments. (MH) Aspect of National Assessment (NAEP) dealt with in this document: Assessment Instruments (Released Exercises).