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You are developing an Azure Function that reads secrets from Azure Key Vault. The function must not use any static credentials in configuration files. You need to authenticate to Key Vault using the function's own identity. Which Azure service feature should you enable?

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You are developing an Azure Function that reads secrets from Azure Key Vault. The function must not use any static credentials in configuration files. You need to authenticate to Key Vault using the function's own identity. Which Azure service feature should you enable?

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.

A

Distractor review

Use storage account access keys to authenticate to Key Vault

Storage account access keys are for authenticating to storage accounts, not Key Vault. They also represent a static credential, which is not allowed.

B

Best answer

Assign a managed identity to the function app and grant it access to the Key Vault

Managed identities allow the function app to authenticate to Key Vault without any stored credentials. The identity is automatically managed by Microsoft Entra ID.

C

Distractor review

Generate a shared access signature (SAS) token for the Key Vault

SAS tokens are primarily used for delegated access to Azure Storage, not for authenticating apps to Key Vault.

D

Distractor review

Create a service principal and store its certificate in the function app's local storage

Service principals require managing a certificate or secret, which would be static credentials stored locally – not meeting the requirement of no static credentials.

Common exam trap

Common exam trap: NAT rules depend on direction and matching traffic

NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.

Technical deep dive

How to think about this question

NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.

KKey Concepts to Remember

  • Static NAT maps one inside address to one outside address.
  • PAT allows many inside hosts to share one public address using ports.
  • Inside local and inside global describe the private and translated addresses.
  • NAT ACLs identify traffic for translation, not always security filtering.

TExam Day Tips

  • Identify inside and outside interfaces first.
  • Check whether the scenario needs static NAT, dynamic NAT or PAT.
  • Do not confuse NAT matching ACLs with normal packet-filtering intent.

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.

Question 1

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Question 2

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Question 3

A developer needs to run a Kusto query against application request data to identify 95th percentile latency by operation. Where should the query be run? The architecture review board prefers a managed AWS-native control.

Question 4

You are developing a web app that authenticates users via Microsoft Entra ID. The app needs to read the user's profile and send emails on their behalf. You want to minimize user consent prompts. Which OAuth 2.0 grant type should you use?

Question 5

You are developing an Azure Function that processes messages from an Azure Service Bus queue. The function uses a Service Bus queue trigger and runs on a Consumption Plan. The queue receives a high volume of messages in bursts. You need to ensure that the function scales out to handle the load but does not exceed 10 concurrent instances. Which configuration should you apply?

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?

Static NAT maps one inside address to one outside address.

What is the correct answer to this question?

The correct answer is: Assign a managed identity to the function app and grant it access to the Key Vault — Managed identities provide an automatically managed identity in Microsoft Entra ID for your app to authenticate to Azure resources without storing credentials. The function app's system-assigned or user-assigned managed identity can be granted access to Key Vault via an access policy. Access keys are not relevant for managed identity authentication. Shared Access Signatures (SAS) are used for delegated access to storage or other services, not for app-to-service authentication. Service principals can be used but require manual certificate or secret management, which violates the requirement of no static credentials.

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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