Match each AWS pricing concept to its definition.
Drag a concept onto its matching description — or click a concept then click the description.
Pay for compute capacity by the hour/second
Significant discount for 1-3 year commitment
Unused EC2 capacity at steep discount
Flexible pricing model for compute usage
Limited free usage for new customers
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
On-Demand: Pay for compute capacity by the hour or second with no long-term commitments.
On-Demand is pay-as-you-go, Reserved Instances require a term commitment, Spot Instances are interruptible, and Savings Plans offer flexibility. Common confusions include mixing up On-Demand with Spot Instances.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
On-Demand: Pay for compute capacity by the hour or second with no long-term commitments.
Why this is correct
On-Demand pricing is the standard pay-as-you-go model for EC2, with no upfront payment and no long-term commitment. You are billed per second (minimum 60 seconds) for compute capacity, giving you full flexibility to scale up or down. This is the correct definition of On-Demand pricing.
Reserved Instances: Reserve capacity and receive a discount in exchange for a 1- or 3-year commitment.
Why this is correct
Reserved Instances provide a significant discount (up to 72%) compared to On-Demand, in exchange for a commitment to a specific instance configuration for 1 or 3 years. You reserve capacity in a particular Availability Zone, ensuring it is available when needed, and you pay a reduced hourly rate. This accurately defines Reserved Instances.
Spot Instances: Purchase unused EC2 capacity at a significant discount, but instances can be interrupted.
Why this is correct
Spot Instances allow you to bid for unused EC2 capacity, often at up to 90% discount from On-Demand prices. However, these instances can be reclaimed by AWS with a two-minute warning when EC2 needs the capacity back, making them interruptible. This is the correct definition of Spot Instances.
Savings Plans: Flexible pricing model offering lower prices in exchange for a commitment to a consistent amount of usage for 1 or 3 years.
Why this is correct
Savings Plans are a flexible pricing model where you commit to a consistent amount of compute usage (measured in $/hour) for a 1- or 3-year term, in exchange for lower rates (up to 72% off On-Demand). Unlike Reserved Instances, Savings Plans automatically apply to any instance family, size, region, or OS within EC2, Fargate, and Lambda. This definition correctly captures the essence of Savings Plans.
On-Demand: Pay a low price but instances can be terminated.
Why it's wrong here
This description incorrectly pairs On-Demand with Spot behavior. On-Demand instances are not terminated due to pricing conditions; they run reliably until you stop or terminate them, and you pay the full On-Demand rate per hour or second without interruption. The ability to be terminated at low cost is a characteristic of Spot Instances, not On-Demand.
Reserved Instances: Pay only for resources used per second.
Why it's wrong here
This statement confuses On-Demand pricing with Reserved Instances. Reserved Instances require a 1- or 3-year commitment for a specific instance family and region, and billing is based on the hourly rate for the reserved capacity, not per-second usage. Per-second metering is a feature of On-Demand and Savings Plans, not of Reserved Instances.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CLF-C02 practice question is part of Courseiva's free Amazon Web Services certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CLF-C02 exam.