- A
Apply an organization policy with the `compute.allowedExternalIpAccess` constraint
Why wrong: This constraint controls external IP access, not the regions where VM instances can be created. It does not address the requirement.
- B
Apply an organization policy with the `compute.restrictResourceCreation` constraint
Why wrong: This constraint restricts the types of resources that can be created, not their locations. It is not appropriate for limiting VM creation to specific regions.
- C
Set an IAM policy on the folder that denies compute.instances.create permission in disallowed regions
Correct. IAM conditions allow you to deny the compute.instances.create permission based on the resource location, effectively restricting VM creation to allowed regions across all projects in the folder.
- D
Use gcloud config set compute/region and enforce with a script
Why wrong: Setting the region in gcloud config only affects the client-side default and is not enforceable across all projects. It does not provide centralized policy enforcement.
Google ACE IAM Conditions Practice Question
This ACE practice question tests your understanding of setting up a cloud solution environment. 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. A key principle to apply: iAM Conditions. 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.
An organization wants to manage GCP resources for multiple teams using a hierarchy of folders and projects. They need to apply a uniform policy that restricts the regions where VM instances can be created across all projects in a folder. Which approach should they use?
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
Set an IAM policy on the folder that denies compute.instances.create permission in disallowed regions
The correct approach uses IAM conditions to restrict resource creation based on location. While organization policies with the 'gcp.resource-locations' constraint are the recommended method, option C is the only valid choice among the given options. IAM policies on the folder with conditions can effectively deny compute.instances.create permission in disallowed regions, enforcing uniform control across all projects in the folder.
Key principle: IAM Conditions
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Apply an organization policy with the `compute.allowedExternalIpAccess` constraint
Why it's wrong here
This constraint controls external IP access, not the regions where VM instances can be created. It does not address the requirement.
- ✗
Apply an organization policy with the `compute.restrictResourceCreation` constraint
Why it's wrong here
This constraint restricts the types of resources that can be created, not their locations. It is not appropriate for limiting VM creation to specific regions.
- ✓
Set an IAM policy on the folder that denies compute.instances.create permission in disallowed regions
Why this is correct
Correct. IAM conditions allow you to deny the compute.instances.create permission based on the resource location, effectively restricting VM creation to allowed regions across all projects in the folder.
Related concept
IAM Conditions
- ✗
Use gcloud config set compute/region and enforce with a script
Why it's wrong here
Setting the region in gcloud config only affects the client-side default and is not enforceable across all projects. It does not provide centralized policy enforcement.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Candidates may confuse organization policy constraints with IAM policies. While organization policies are designed for such restrictions, IAM conditions can also achieve the same result.
Detailed technical explanation
How to think about this question
Treat this as a scenario question. Identify the problem, the constraint, and the best action. Then compare each option against those facts.
KKey Concepts to Remember
- IAM Conditions
- Organization Policy Constraints
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
IAM Conditions
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.
Review iAM Conditions, then practise related ACE questions on the same topic to reinforce the concept.
- →
Setting Up a Cloud Solution Environment — study guide chapter
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FAQ
Questions learners often ask
What does this ACE question test?
Setting Up a Cloud Solution Environment — This question tests Setting Up a Cloud Solution Environment — IAM Conditions.
What is the correct answer to this question?
The correct answer is: Set an IAM policy on the folder that denies compute.instances.create permission in disallowed regions — The correct approach uses IAM conditions to restrict resource creation based on location. While organization policies with the 'gcp.resource-locations' constraint are the recommended method, option C is the only valid choice among the given options. IAM policies on the folder with conditions can effectively deny compute.instances.create permission in disallowed regions, enforcing uniform control across all projects in the folder.
What should I do if I get this ACE question wrong?
Review iAM Conditions, then practise related ACE questions on the same topic to reinforce the concept.
What is the key concept behind this question?
IAM Conditions
About these practice questions
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Last reviewed: Jul 4, 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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