Quick Answer
The correct answers are AWS Systems Manager Parameter Store, AWS Secrets Manager, and Lambda environment variables. These three services provide distinct but complementary methods for handling application configuration in AWS, with Parameter Store offering a hierarchical, low-cost option for both plaintext and secure string parameters, Secrets Manager adding automatic rotation and fine-grained access control for sensitive data like database credentials, and Lambda environment variables enabling simple key-value injection directly into function code. On the AWS Certified Developer Associate DVA-C02 exam, this question tests your understanding of where each service fits—Secrets Manager for secrets requiring lifecycle management, Parameter Store for general configuration with optional encryption, and Lambda env vars for static, function-specific settings. A common trap is confusing Parameter Store’s secure strings with Secrets Manager’s rotation capabilities, or forgetting that Lambda env vars are a valid configuration method despite their simplicity. Remember the mnemonic “SPL” for Secrets Manager, Parameter Store, and Lambda env vars to quickly recall the three valid approaches.
This DVA-C02 practice question tests your understanding of troubleshooting and optimization. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Which THREE are valid methods to handle application configuration in AWS? (Choose three.)
AWS CloudFormation template parameters
Why wrong: Template parameters are for deployment, not runtime.
AWS Secrets Manager
Manages secrets like database passwords.
AWS IAM roles
Why wrong: IAM roles define permissions, not config.
Lambda environment variables
Can store config key-value pairs.
AWS Systems Manager Parameter Store
Stores configuration data securely.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
AWS Secrets Manager
AWS Secrets Manager is a valid method for handling application configuration because it securely stores and manages sensitive configuration data such as database credentials, API keys, and other secrets. It supports automatic rotation of secrets, fine-grained access control via IAM policies, and integrates with AWS services like RDS, Redshift, and Lambda. This makes it ideal for managing dynamic configuration values that require high security and lifecycle management.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
AWS CloudFormation template parameters
Why it's wrong here
Template parameters are for deployment, not runtime.
AWS Secrets Manager
Why this is correct
Manages secrets like database passwords.
Related concept
Read the scenario before looking for a memorised answer.
AWS IAM roles
Why it's wrong here
IAM roles define permissions, not config.
Lambda environment variables
Why this is correct
Can store config key-value pairs.
Related concept
Read the scenario before looking for a memorised answer.
AWS Systems Manager Parameter Store
Why this is correct
Stores configuration data securely.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates often confuse IAM roles with configuration storage, thinking that roles can hold configuration data, when in fact roles only define permissions and cannot store key-value pairs or secrets.
Detailed technical explanation
Under the hood, AWS Secrets Manager encrypts secrets at rest using AWS KMS (Key Management Service) and supports automatic rotation via Lambda functions, which is critical for compliance with security standards like PCI DSS. Lambda environment variables are a simple key-value store that can be set at deployment time, but they are limited to 4 KB total and are not encrypted by default unless you enable encryption helpers. Systems Manager Parameter Store offers a hierarchical store for configuration data (e.g., /prod/db/url) with support for SecureString parameters that use KMS encryption, and it integrates with AWS CloudFormation and Lambda for dynamic reference.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
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Troubleshooting and Optimization — study guide chapter
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Troubleshooting and Optimization practice questions
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AWS Certified Developer Associate DVA-C02 study guide
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FAQ
Troubleshooting and Optimization — This question tests Troubleshooting and Optimization — Read the scenario before looking for a memorised answer..
The correct answer is: AWS Secrets Manager — AWS Secrets Manager is a valid method for handling application configuration because it securely stores and manages sensitive configuration data such as database credentials, API keys, and other secrets. It supports automatic rotation of secrets, fine-grained access control via IAM policies, and integrates with AWS services like RDS, Redshift, and Lambda. This makes it ideal for managing dynamic configuration values that require high security and lifecycle management.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
This DVA-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 DVA-C02 exam.
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