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DVA-C02 Security Practice Question

Which TWO are features of AWS Identity and Access Management (IAM)? (Choose 2)

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

Define fine-grained permissions with policies

Options C and E are correct. IAM allows you to define fine-grained permissions using policies (C) and create and manage users and groups (E). Option A is incorrect because encrypting S3 objects is a feature of S3, not IAM. Option B is incorrect because monitoring network traffic is typically done by VPC flow logs or CloudTrail, not IAM. Option D is incorrect because managing EC2 instance lifecycle is an EC2 function, not IAM.

Answer analysis

Option-by-option breakdown

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

  • Encrypt S3 objects automatically

    Why it's wrong here

    IAM does not perform data-plane encryption. Server-side encryption for S3 objects is handled by S3 itself using SSE-S3, SSE-KMS, or SSE-C, where KMS provides the cryptographic keys. IAM only governs who is authorized to call the encryption-related APIs (e.g., s3:PutObject) or to use a KMS key, not the actual encryption of stored data.

  • Monitor network traffic

    Why it's wrong here

    IAM is an identity and access management service; it authenticates principals and authorizes API calls, but it does not inspect or monitor network traffic. Network-level observability is provided by services like VPC Flow Logs, AWS CloudTrail for API activity, and Amazon GuardDuty for threat detection. IAM policies can only control whether a principal is permitted to use such monitoring services, not perform the monitoring itself.

  • Define fine-grained permissions with policies

    Why this is correct

    IAM policies are the core mechanism for defining fine-grained permissions. You can craft JSON-based identity policies that specify exactly which actions are allowed or denied on which resources, under what conditions (e.g., source IP, MFA presence, time of day). This allows least-privilege access control at the resource and API-action level, central to IAM's purpose.

  • Manage EC2 instance lifecycle

    Why it's wrong here

    IAM does not manage EC2 instance lifecycle operations such as launching, stopping, or terminating instances. Those actions are performed by the Amazon EC2 service (or Auto Scaling) via EC2 APIs. IAM's role is to control whether a user, group, or role is authorized to call those EC2 APIs, but it never directly orchestrates the instance lifecycle.

  • Create and manage IAM users and groups

    Why this is correct

    Creating and managing IAM users and groups is a foundational feature of IAM. Users represent individual principals with long-term credentials, and groups let you organize users and apply permissions collectively via attached policies. IAM also supports roles for temporary credentials, but user and group management remains one of its most basic and commonly used capabilities.

Quick reference

AWS S3 Storage Class Comparison

Storage ClassMin DurationRetrievalUse Case
S3 StandardNoneImmediateFrequently accessed data
S3 Standard-IA30 daysImmediateInfrequent access, rapid retrieval
S3 One Zone-IA30 daysImmediateNon-critical infrequent data
S3 Intelligent-TieringNoneImmediate–hoursUnknown or changing access patterns
S3 Glacier Instant90 daysMillisecondsArchive with instant retrieval
S3 Glacier Flexible90 daysMinutes–hoursArchive, flexible retrieval
S3 Glacier Deep Archive180 daysHoursLong-term compliance archive

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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.