How do I set an image to inline instead of floating in Pages?

Question

In the old pages there was a button in the inspector that said floating or inline. I can't find it in version 5.5... How do I switch to inline? Can it be the default setting?

Answer 1

Hello. I'm using Pages 5.0.1
I've been trying to move an image back so that text is in front. Your post was very helpful.
Thank you.
I would like to sugust a few extra steps.
Menu > Arrange > Section Masters > Move Objects to Section Master
This puts the same image in the same area on every page of my document.
However I am working on one image on one page.
To stop the image from appearing on every page these steps are needed:
     FIRST       Create a Section Break before and after the image.
                      Menu > Insert > Section Break
     SECOND  Menu > Arrange > Section Masters > Move Objects to Section Master
     Now the image does not appear on every page of my document.
Pages does not allow a section break in the middle of a document page. The section break insists on ending the page like a page break. Start the Section Break at the end of the previous page.
Work within the one page section to finish that page.
Some things I don't understand about Pages:
It appears the following options that appear with a right click on an image
do not work. (They are grayed out) :
     “Bring to Front”
     “Send to Back”
They do not work with either of the following selected:
     “Stay on Page” and/or “Move with Text”
These also don’t work. (They are grayed out)
They are found in the drop down menu:  (Menu > Arrange)
     “Bring Forward”
     “Bring to Front”
     “Send Backward”
     “Send to Back"
Why are these options grayed out? 
When are they available?
What must I do for them not to be grayed out?
How are they used?
My opinion:
Sending an image to the “Front” or “Back” of text or other images should be a simple thing to do.
And it should make no difference whether the image “Stays on Page” or “Moves with Text”
Thanks