Final answer:
The drainage bag of an indwelling catheter should be positioned below the level of the bladder to prevent backflow of urine, which could lead to an infection.
Step-by-step explanation:
When caring for a client with an indwelling catheter, the correct position for the drainage bag is to position the drainage bag below the level of the bladder. It is important not to position the bag on the floor as it may facilitate infection, and not to place it above the level of the bladder to prevent backflow of urine into the bladder. Disconnecting the catheter during bathing is not a standard practice as it increases the risk of introducing pathogens and can lead to infection.