You are developing an ASP.NET Core web API that is hosted on Azure App Service. The API needs to read secrets from Azure Key Vault at startup. You want to avoid storing any credentials in the application code or configuration. Which approach should you use?
Answer choices
Why each option matters
Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.
Distractor review
Use the Key Vault SDK with a client ID and client secret stored in App Service application settings.
While possible, this still requires storing a secret (the client secret) in application settings, which is not fully credential-free. Managed identity eliminates the need for any secret.
Best answer
Enable the system-assigned managed identity for the App Service and configure Key Vault access policies to allow that identity.
Correct. Managed identity allows the App Service to authenticate to Microsoft Entra ID without any credentials. The Key Vault access policy grants the identity read access to secrets.
Distractor review
Use Microsoft Entra ID application roles to assign the App Service a role that allows reading secrets.
Application roles are not used for Key Vault access. Key Vault uses access policies or Azure RBAC roles (for Key Vault data plane) assigned to the identity.
Distractor review
Store the Key Vault URL and a connection string with the secret in the application's app.config file.
This exposes credentials in the configuration file, which is insecure and does not leverage Azure's security features.
Common exam trap
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Technical deep dive
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
- Use explanations to understand the rule behind the answer.
TExam Day Tips
- Underline the problem statement mentally.
- 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.
Related practice questions
Related AZ-204 practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
More questions from this exam
Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.
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Question 4
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Question 5
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Question 6
You are monitoring an Azure App Service using Application Insights. You notice that the server response time is high for certain requests. You need to drill down to see which external dependencies (like databases or APIs) are causing the delay. Which Application Insights feature should you use?
FAQ
Questions learners often ask
What does this AZ-204 question test?
Read the scenario before looking for a memorised answer.
What is the correct answer to this question?
The correct answer is: Enable the system-assigned managed identity for the App Service and configure Key Vault access policies to allow that identity. — The recommended approach for Azure services to access Key Vault without storing secrets is to use Managed Identities. Azure App Service supports system-assigned managed identities. By enabling it, the application can authenticate to Key Vault using the service principal automatically created in Microsoft Entra ID, and access policies in Key Vault can grant permissions to that identity.
What should I do if I get this AZ-204 question wrong?
Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.
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