When you place or paste an object into a frame, it appears at the upper-left corner of the frame by default. If the frame and its content are different sizes, you can use the Fitting commands to achieve a perfect fit automatically.
Frame alignment options apply to frames that contain either a graphic or another text frame (text frames nested within another frame), but they do not affect paragraphs inside a text frame—you control alignment and positioning of text itself using the Text Frame Options command and the Paragraph, Paragraph Styles, and Story panels.