The correct answer is to add a cache-lookup and cache-store policy to the API operation in Azure API Management. These two policies work together as a pair: cache-lookup checks for a cached response before forwarding the request to the backend, and cache-store saves the backend’s response into the cache, respecting the Cache-Control header or a specified duration like 10 minutes. This approach is ideal for expensive-to-compute operations because it offloads repeated processing from the Azure Function, reducing latency and backend load without requiring an external cache service. On the AZ-204 exam, this scenario tests your understanding of APIM’s built-in caching policies versus external caching solutions like Redis; a common trap is assuming you must configure a separate cache resource when the exam expects the simpler policy-based approach. Memory tip: think “look before you store” — the lookup policy always runs first to check for a hit, and the store policy writes the fresh response only after a miss.
AZ-204 Develop Azure compute solutions Practice Question
This AZ-204 practice question tests your understanding of develop azure compute solutions. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
You are developing an API using Azure API Management (APIM). The API is backed by an Azure Function that processes requests. You need to implement caching for responses that are expensive to compute. The cache should expire after 10 minutes. What should you configure in APIM?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Add a cache-lookup and cache-store policy to the API operation.
Option B is correct because Azure API Management (APIM) provides built-in caching policies—`cache-lookup` and `cache-store`—that can be applied directly to an API operation. These policies cache the response from the backend (the Azure Function) and respect the `cache-control` header or a specified duration, such as 10 minutes, without requiring an external cache. This is the simplest and most direct way to implement response caching for expensive-to-compute operations within APIM.
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.
✗
Configure Azure Redis Cache as an external cache in APIM.
Why it's wrong here
Redis can be used but is not required; built-in cache suffices.
✓
Add a cache-lookup and cache-store policy to the API operation.
Why this is correct
These policies cache responses in APIM's built-in cache.
Related concept
Read the scenario before looking for a memorised answer.
✗
Implement response caching in the Azure Function code.
Why it's wrong here
Caching at the function level is less centralized and manageable.
✗
Use Azure Front Door to cache responses.
Why it's wrong here
Front Door is for global load balancing and CDN, not API caching.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume an external cache like Redis is required for any caching in APIM, but the built-in cache-lookup and cache-store policies use APIM's internal cache by default, making external Redis optional and only needed for advanced scenarios like multi-region deployments or higher cache capacity.
Detailed technical explanation
How to think about this question
APIM's `cache-lookup` and `cache-store` policies work by intercepting the request and response pipeline: `cache-lookup` checks the internal cache (or external Redis if configured) for a cached response based on the cache key (typically URL and headers), and if found, returns it without calling the backend; `cache-store` writes the response to the cache after a successful backend call. The cache duration can be set via the `duration` attribute in the `cache-store` policy or by honoring the `Cache-Control` header from the backend, with a default of 300 seconds if not specified. In a real-world scenario, if the Azure Function returns a `Cache-Control: public, max-age=600` header, APIM will automatically cache for 10 minutes, but you can also override this with a fixed duration in the policy to ensure consistency.
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
An e-commerce site experiences heavy traffic on Black Friday and near-zero traffic during off-peak weeks. Rather than provisioning permanent large VMs, the team uses auto-scaling groups that add capacity automatically under load and reduce it overnight. Questions like this test whether you understand elasticity, availability zones, and cloud compute scaling patterns.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-204 question in full detail.
Develop Azure compute solutions — This question tests Develop Azure compute solutions — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Add a cache-lookup and cache-store policy to the API operation. — Option B is correct because Azure API Management (APIM) provides built-in caching policies—`cache-lookup` and `cache-store`—that can be applied directly to an API operation. These policies cache the response from the backend (the Azure Function) and respect the `cache-control` header or a specified duration, such as 10 minutes, without requiring an external cache. This is the simplest and most direct way to implement response caching for expensive-to-compute operations within APIM.
What should I do if I get this AZ-204 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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Question Discussion
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