- A
AWS CloudHSM
Why wrong: CloudHSM provides dedicated hardware but requires more management than KMS.
- B
AWS Secrets Manager
Why wrong: Secrets Manager stores secrets, but does not create or manage encryption keys.
- C
AWS Key Management Service (KMS)
KMS is a fully managed service for creating and controlling encryption keys.
- D
AWS Certificate Manager (ACM)
Why wrong: ACM manages SSL/TLS certificates, not encryption keys for data at rest.
Question 520 of 1,746
SAP-C02 Design for New Solutions Practice Question
This SAP-C02 practice question tests your understanding of design for new solutions. 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.
A company is designing a new application that will process sensitive financial data. The application must encrypt data at rest and in transit. The company wants to use AWS managed keys for encryption. Which AWS service should the company use to create and manage the encryption keys?
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
✓
AWS Key Management Service (KMS)
AWS Key Management Service (KMS) is the correct choice because it is a managed service that enables you to create, store, and control encryption keys used to encrypt data at rest and in transit. KMS integrates with other AWS services (e.g., S3, EBS, RDS) and supports envelope encryption, where a customer master key (CMK) encrypts data keys that perform the actual encryption. It also provides automatic key rotation and fine-grained access control via IAM policies and key policies, meeting the requirement for AWS-managed keys.
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.
- ✗
AWS CloudHSM
Why it's wrong here
CloudHSM provides dedicated hardware but requires more management than KMS.
- ✗
AWS Secrets Manager
Why it's wrong here
Secrets Manager stores secrets, but does not create or manage encryption keys.
- ✓
AWS Key Management Service (KMS)
Why this is correct
KMS is a fully managed service for creating and controlling encryption keys.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
AWS Certificate Manager (ACM)
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse AWS CloudHSM (which provides dedicated, customer-managed HSMs) with KMS (which provides fully managed, AWS-controlled keys), leading them to choose CloudHSM when the question explicitly requires 'AWS managed keys'.
Detailed technical explanation
How to think about this question
KMS uses FIPS 140-2 validated HSMs to protect CMKs, and supports symmetric and asymmetric keys for encryption, signing, and verification. A subtle behavior is that KMS enforces a per-account, per-region key policy that can be combined with IAM policies, and when using envelope encryption, the data key is generated by KMS and can be cached by the AWS encryption SDK to reduce API calls. In a real-world scenario, if the application needs to encrypt sensitive financial data in S3, KMS integrates directly with S3 server-side encryption (SSE-KMS) to automatically encrypt objects at rest, while TLS handles encryption in transit.
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 media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
Quick reference
AWS S3 Storage Class Comparison
| Storage Class | Min Duration | Retrieval | Use Case |
|---|---|---|---|
| S3 Standard | None | Immediate | Frequently accessed data |
| S3 Standard-IA | 30 days | Immediate | Infrequent access, rapid retrieval |
| S3 One Zone-IA | 30 days | Immediate | Non-critical infrequent data |
| S3 Intelligent-Tiering | None | Immediate–hours | Unknown or changing access patterns |
| S3 Glacier Instant | 90 days | Milliseconds | Archive with instant retrieval |
| S3 Glacier Flexible | 90 days | Minutes–hours | Archive, flexible retrieval |
| S3 Glacier Deep Archive | 180 days | Hours | Long-term compliance archive |
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.
- →
Design for New Solutions — study guide chapter
Learn the concepts, then practise the questions
- →
Design for New Solutions practice questions
Targeted practice on this topic area only
- →
All SAP-C02 questions
1,746 questions across all exam domains
- →
AWS Certified Solutions Architect Professional SAP-C02 study guide
Full concept coverage aligned to exam objectives
- →
SAP-C02 practice test guide
How to use practice tests most effectively before exam day
Related practice questions
Related SAP-C02 practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
Design Solutions for Organizational Complexity practice questions
Practise SAP-C02 questions linked to Design Solutions for Organizational Complexity.
Design for New Solutions practice questions
Practise SAP-C02 questions linked to Design for New Solutions.
Continuous Improvement for Existing Solutions practice questions
Practise SAP-C02 questions linked to Continuous Improvement for Existing Solutions.
Accelerate Workload Migration and Modernization practice questions
Practise SAP-C02 questions linked to Accelerate Workload Migration and Modernization.
SAA-C03 VPC practice questions
Practise SAP-C02 questions linked to SAA-C03 VPC.
SAA-C03 S3 lifecycle policy questions
Practise SAP-C02 questions linked to SAA-C03 S3 lifecycle policy questions.
SAA-C03 RDS Multi-AZ questions
Practise SAP-C02 questions linked to SAA-C03 RDS Multi-AZ questions.
SAA-C03 IAM policy practice questions
Practise SAP-C02 questions linked to SAA-C03 IAM policy.
SAA-C03 Route 53 failover questions
Practise SAP-C02 questions linked to SAA-C03 Route 53 failover questions.
SAA-C03 CloudFront practice questions
Practise SAP-C02 questions linked to SAA-C03 CloudFront.
SAA-C03 NAT gateway questions
Practise SAP-C02 questions linked to SAA-C03 NAT gateway questions.
SAA-C03 VPC endpoint questions
Practise SAP-C02 questions linked to SAA-C03 VPC endpoint questions.
Practice this exam
Start a free SAP-C02 practice session
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
FAQ
Questions learners often ask
What does this SAP-C02 question test?
Design for New Solutions — This question tests Design for New Solutions — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: AWS Key Management Service (KMS) — AWS Key Management Service (KMS) is the correct choice because it is a managed service that enables you to create, store, and control encryption keys used to encrypt data at rest and in transit. KMS integrates with other AWS services (e.g., S3, EBS, RDS) and supports envelope encryption, where a customer master key (CMK) encrypts data keys that perform the actual encryption. It also provides automatic key rotation and fine-grained access control via IAM policies and key policies, meeting the requirement for AWS-managed keys.
What should I do if I get this SAP-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.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Keep practising
More SAP-C02 practice questions
- A company wants to automate the migration of on-premises servers to AWS. The migration plan includes discovery, assessme…
- A company is using AWS Organizations with hundreds of accounts. The central IT team needs to deploy a common set of AWS…
- A multinational company operates a multi-account AWS environment using AWS Organizations. The security team needs to enf…
- A company has a multi-account AWS environment with a centralized logging account. The security team needs to analyze VPC…
- A company has multiple AWS accounts and wants to centralize logging of all API calls. Which TWO services should be used…
- Match each AWS compute service to its use case.
Last reviewed: Jun 24, 2026
This SAP-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 SAP-C02 exam.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.