Who is exempt from displaying the skier down flag?

The correct response is that moored or anchored motorboats are exempt from displaying the skier down flag. This is because the primary purpose of the skier down flag is to indicate that a skier is in the water and may pose a hazard to other vessels. When a motorboat is moored or anchored, it is not engaged in towing activities or operating in a way that could create a situation where skiers are in the water near it. As such, the requirement for these vessels to display the flag does not apply.

Other vessels, such as fishing boats and canoes, are generally in motion or in operation on the water and could be involved in towing skiers, which is why they are obligated to display the flag when necessary. Any vessel that is operational and may come into proximity to individuals in the water towing or being towed has a responsibility to convey the presence of those skiers for safety. This ensures that all water users are aware of potential hazards, thus promoting safe boating practices.