Question 862 of 1,616
Development with AWS ServicesmediumMultiple ChoiceObjective-mapped

IAM Policy Evaluation for KMS Decrypt with Encryption Context

This DVA-C02 practice question tests your understanding of development with aws services. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.

Exhibit

Refer to the exhibit.

{
  "Version": "2012-10-17",
  "Statement": [
    {
      "Effect": "Allow",
      "Action": "kms:Decrypt",
      "Resource": "arn:aws:kms:us-east-1:123456789012:key/abc123",
      "Condition": {
        "StringEquals": {
          "kms:EncryptionContext:department": "finance"
        }
      }
    },
    {
      "Effect": "Deny",
      "Action": "kms:Decrypt",
      "Resource": "*",
      "Condition": {
        "StringNotEquals": {
          "kms:EncryptionContext:department": "finance"
        }
      }
    }
  ]
}

The IAM policy above is attached to a user. The user tries to decrypt a KMS key with encryption context {"department": "finance"}. What will happen?

Exhibit

Refer to the exhibit.

{
  "Version": "2012-10-17",
  "Statement": [
    {
      "Effect": "Allow",
      "Action": "kms:Decrypt",
      "Resource": "arn:aws:kms:us-east-1:123456789012:key/abc123",
      "Condition": {
        "StringEquals": {
          "kms:EncryptionContext:department": "finance"
        }
      }
    },
    {
      "Effect": "Deny",
      "Action": "kms:Decrypt",
      "Resource": "*",
      "Condition": {
        "StringNotEquals": {
          "kms:EncryptionContext:department": "finance"
        }
      }
    }
  ]
}

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

The action is allowed because the Allow statement matches the encryption context.

The Allow statement in the IAM policy explicitly grants the `kms:Decrypt` action for the KMS key when the encryption context `{"department": "finance"}` is present. Since the user's request matches this condition, the Allow applies. There is no explicit Deny that matches the request, so the default implicit deny is overridden by the explicit Allow, and the action succeeds.

Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • The action is allowed because the Allow statement matches the encryption context.

    Why this is correct

    The Allow condition matches, and the Deny condition does not, so the action is allowed.

    Related concept

    Read the scenario before looking for a memorised answer.

  • The action is denied because the Deny statement applies to all resources.

    Why it's wrong here

    The Deny statement has a condition that does not match, so it does not apply.

  • The action is denied because there is an explicit Deny that overrides any Allow.

    Why it's wrong here

    The Deny only applies when the condition is met, which it is not.

  • The action is denied because the Allow statement does not explicitly allow.

    Why it's wrong here

    The Allow statement explicitly allows when the condition matches.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates often assume any Deny statement in a policy will block all actions, failing to notice that the Deny is scoped to a specific encryption context that does not match the request.

Detailed technical explanation

How to think about this question

IAM policy evaluation logic follows an explicit Deny override, then explicit Allow, then implicit Deny. The encryption context in KMS API calls is a set of key-value pairs that must exactly match the condition in the policy for the Allow or Deny to apply. In this scenario, the Deny statement uses a `StringEquals` condition for `kms:EncryptionContext:department` with value `hr`, so it only denies requests with that specific context, leaving the `finance` context unaffected.

KKey Concepts to Remember

  • Read the scenario before looking for a memorised answer.
  • Find the constraint that changes the correct option.
  • Eliminate answers that are true in general but not in this case.

TExam Day Tips

  • Watch for words such as best, first, most likely and least administrative effort.
  • Review why wrong options are wrong, not only why the correct option is correct.

Key takeaway

Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Real-world example

How this comes up in practice

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

Got this wrong? Here's your next step.

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

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FAQ

Questions learners often ask

What does this DVA-C02 question test?

Development with AWS Services — This question tests Development with AWS Services — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: The action is allowed because the Allow statement matches the encryption context. — The Allow statement in the IAM policy explicitly grants the `kms:Decrypt` action for the KMS key when the encryption context `{"department": "finance"}` is present. Since the user's request matches this condition, the Allow applies. There is no explicit Deny that matches the request, so the default implicit deny is overridden by the explicit Allow, and the action succeeds.

What should I do if I get this DVA-C02 question wrong?

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

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Last reviewed: Jul 4, 2026

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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.