Go to Control Panel, test manager, click modify for the test in question. You’re now at the Test Canvas. Click “creation settings” at the top and you should get the following options:
CREATION SETTINGS > Add images, files, and URL’s to questions/ Add images and files to answers. Click Add images, files, and URL’s to questions and that will allow you to put images in the assessment. When creating or modifying questions, you will see a Browse button which will allow you to browse to attach an external file (such as a picture) to the exam question.