I am using "that other screen reader" for testing, as I cannot afford a full licensed copy of JAWS and haven't installed in 40 minute mode on this machine.
When I am in a Word document and have encountered a picture I hear "Graphic" announced, but that picture (graphic) is not selected just because I have focus on it. It gets selected when I immediately hit SHIFT+Right Arrow after hearing Graphic. At this point bringing up the context menu includes all items appropriate to a picture/image/graphic.
I would presume that selecting a pre-existing image in MS-Word 2010 using JAWS would be very, very similar. When you originally insert an image it is already selected upon insert, until you navigate off/out of it.
Brian - Windows 10 Home, 64-Bit, Version 1809, Build 17763
Explanations exist; they have existed for all time; there is always a well-known solution to every human problem — neat, plausible, and wrong.
~ H.L. Mencken, AKA The Sage of Baltimore