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To create a drop-down list in Excel, first input the items you want in a separate sheet. Then, select the cells where you want the list to appear and go to Data Validation. Choose "List" for Allow and click on the source button to select the items. Alternatively, you can type the items directly in the source field separated by a comma. Named ranges can also be used. After selecting OK, the items are ready to be chosen from the drop-down list. It's a simple process that you can try out now.