Answer
The water level moves down if the anchor is dropped into the water.
Work Step by Step
When the anchor is on the boat, the anchor displaces its weight of water.
When the anchor is in the water, it displaces its volume of water.
Since the density of the anchor is greater than the density of water, the anchor displaces more water when it is on the boat than when it is in the water.
Therefore, the water level moves down if the anchor is dropped into the water.
