- A
Use a third-party secrets vault like HashiCorp Vault running on GKE.
Third-party vaults are secure if properly configured.
- B
Store secrets as environment variables in plain text in the instance metadata.
Why wrong: Plain text in metadata is insecure; metadata is accessible to anyone with access.
- C
Use Cloud Secret Manager to store and retrieve secrets.
Secret Manager provides secure storage and access control.
- D
Store secrets in a Cloud Storage bucket with fine-grained ACLs and encryption.
With proper controls, Cloud Storage is a viable option.
- E
Encrypt secrets with Cloud KMS and store them in a file on the instance.
Why wrong: Storing encrypted files on the instance leaves them vulnerable if the instance is compromised.
Question 977 of 1,000
mediumMultiple SelectObjective-mapped
Google ACE Practice Question: Securely store secrets (API keys, passwords) used…
This ACE practice question tests your understanding of ace exam topics. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 needs to securely store secrets (API keys, passwords) used by applications running on Compute Engine. Which three methods are secure and recommended? (Choose three.)
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
✓
Use a third-party secrets vault like HashiCorp Vault running on GKE.
Option A is correct because HashiCorp Vault is a widely adopted, enterprise-grade secrets management solution that can be deployed on Google Kubernetes Engine (GKE) to securely store, access, and audit API keys and passwords. It provides dynamic secrets, encryption as a service, and fine-grained access policies, making it a recommended approach for Compute Engine applications when integrated via its API or sidecar patterns.
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.
- ✓
Use a third-party secrets vault like HashiCorp Vault running on GKE.
Why this is correct
Third-party vaults are secure if properly configured.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Store secrets as environment variables in plain text in the instance metadata.
Why it's wrong here
Plain text in metadata is insecure; metadata is accessible to anyone with access.
- ✓
Use Cloud Secret Manager to store and retrieve secrets.
Why this is correct
Secret Manager provides secure storage and access control.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Store secrets in a Cloud Storage bucket with fine-grained ACLs and encryption.
Why this is correct
With proper controls, Cloud Storage is a viable option.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Encrypt secrets with Cloud KMS and store them in a file on the instance.
Why it's wrong here
Storing encrypted files on the instance leaves them vulnerable if the instance is compromised.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume encrypting secrets with KMS and storing them locally (Option E) is sufficient, but the Google ACE exam tests that a dedicated secrets management service (like Cloud Secret Manager or a vault) is always the recommended approach over manual encryption and file storage, even if the file is encrypted.
Detailed technical explanation
How to think about this question
Cloud Secret Manager (Option C) uses IAM for access control and integrates with Cloud Audit Logs for every secret access, while Cloud Storage with fine-grained ACLs and KMS encryption (Option D) can be used but requires careful bucket policy configuration and does not natively support automatic secret rotation or versioning as seamlessly as Secret Manager. Under the hood, Secret Manager stores secrets in an encrypted database using Google's default encryption or CMEK, and access is governed by IAM roles like 'secretmanager.secretAccessor', ensuring that only authorized service accounts can retrieve the secret value.
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.
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 ACE question test?
Read the scenario before looking for a memorised answer.
What is the correct answer to this question?
The correct answer is: Use a third-party secrets vault like HashiCorp Vault running on GKE. — Option A is correct because HashiCorp Vault is a widely adopted, enterprise-grade secrets management solution that can be deployed on Google Kubernetes Engine (GKE) to securely store, access, and audit API keys and passwords. It provides dynamic secrets, encryption as a service, and fine-grained access policies, making it a recommended approach for Compute Engine applications when integrated via its API or sidecar patterns.
What should I do if I get this ACE 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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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 →
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Last reviewed: Jun 25, 2026
This ACE practice question is part of Courseiva's free Google Cloud 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 ACE exam.
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