a boat is in a still lake with its anchor up in the boat, it then drops its anchor till it hits the bottom of the lake. Is the water level highest a) when the anchor is in the water. b) when the anchor is in the boat. c) it makes no difference.

b) when the anchor is in the lake it displaces the amount of water equivallent to the volume of the anchor, when the anchor is in the boat it displaces the amount of water equivallent to the anchors mass. Because the anchor is more dense than water it is worth more as mass than it is as volume.