Hi,
I am actually placing screen shots into the MS word document. When i save the document am not sure of which format the image is being considered. The size of the Document is becoming very large. Is there any option in MS word to save the document as a smaller file.
Whilst this isn't a programming-related question, I'll attempt to answer what I think is your question.
All images saved in Word are stored at their original resolution, at their original size, regardless of any resizing/cropping that is performed in Word itself. If you want to reduce file-size, crop/compress the images externally before inserting them into a Word document.
A quick technique i use to reduce the size is open up MSPaint via Start Menu > Run ...and copy the screenshot in there. Then you can save the file as a JPG, and Insert the JPG into your word document by accessing Insert > Picture > From File.
Look at Word Tips sites like
http://www.klariti.com/microsoft-word/Reduce-Microsoft-Word-File-Size3.shtml
and apply the solution.