- A
Store the key in a key vault in each region and use a managed identity to access the key vault.
Why wrong: Having multiple key vaults is unnecessary for a single storage account. The key must reside in the same region as the storage account.
- B
Use a key stored in an Azure Key Vault with the 'Soft Delete' enabled.
Why wrong: Soft Delete is a data protection feature for key vaults, but it does not enforce region affinity.
- C
Use an Azure Key Vault with 'Purge Protection' enabled.
Why wrong: Purge Protection is a retention feature, not related to region binding.
- D
Use an Azure Key Vault in the same region as the storage account (keys are region-bound by default).
Customer-managed keys must be stored in a key vault that resides in the same Azure region as the storage account; this is an inherent constraint.
AZ-500 Secure compute, storage, and databases Practice Question
This AZ-500 practice question tests your understanding of secure compute, storage, and databases. 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.
A company stores highly sensitive data in Azure Blob Storage. They require encryption at rest using a customer-managed key. Additionally, they want to ensure that the key can only be used from the same Azure region as the storage account. Which configuration must they implement?
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 an Azure Key Vault in the same region as the storage account (keys are region-bound by default).
Option D is correct because Azure Key Vault keys are inherently region-bound; when you create a key vault in a specific Azure region, the key material and its cryptographic operations are confined to that region. By placing the key vault in the same region as the storage account, you ensure that the customer-managed key used for Azure Storage Service Encryption (SSE) can only be accessed and used within that region, satisfying the requirement for region-restricted key usage.
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.
- ✗
Store the key in a key vault in each region and use a managed identity to access the key vault.
Why it's wrong here
Having multiple key vaults is unnecessary for a single storage account. The key must reside in the same region as the storage account.
- ✗
Use a key stored in an Azure Key Vault with the 'Soft Delete' enabled.
Why it's wrong here
Soft Delete is a data protection feature for key vaults, but it does not enforce region affinity.
- ✗
Use an Azure Key Vault with 'Purge Protection' enabled.
Why it's wrong here
Purge Protection is a retention feature, not related to region binding.
- ✓
Use an Azure Key Vault in the same region as the storage account (keys are region-bound by default).
Why this is correct
Customer-managed keys must be stored in a key vault that resides in the same Azure region as the storage account; this is an inherent constraint.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may overthink the solution by focusing on additional security features like soft delete or purge protection, when the core requirement is simply about regional restriction, which is already a default behavior of Azure Key Vault.
Detailed technical explanation
How to think about this question
Azure Key Vault keys are stored and operated within a single Azure region; the key vault's endpoint (e.g., vault-name.vault.azure.net) resolves to a regional service, and all cryptographic operations (e.g., wrap/unwrap for SSE) occur in that region. When you configure customer-managed keys for Azure Storage, the storage account calls the key vault in its region to perform key operations, and if the key vault is in a different region, the request would cross regions, violating the requirement. This regional binding is inherent to the Key Vault service and does not require additional configuration.
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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Secure compute, storage, and databases — study guide chapter
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FAQ
Questions learners often ask
What does this AZ-500 question test?
Secure compute, storage, and databases — This question tests Secure compute, storage, and databases — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Use an Azure Key Vault in the same region as the storage account (keys are region-bound by default). — Option D is correct because Azure Key Vault keys are inherently region-bound; when you create a key vault in a specific Azure region, the key material and its cryptographic operations are confined to that region. By placing the key vault in the same region as the storage account, you ensure that the customer-managed key used for Azure Storage Service Encryption (SSE) can only be accessed and used within that region, satisfying the requirement for region-restricted key usage.
What should I do if I get this AZ-500 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.
About these practice questions
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Last reviewed: Jun 11, 2026
This AZ-500 practice question is part of Courseiva's free Microsoft 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 AZ-500 exam.
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