- A
Transparent Data Encryption (TDE)
Why wrong: TDE encrypts the entire database at rest, but the database engine has access to the encryption keys, so DBAs with the 'sysadmin' role can still query and see plaintext data.
- B
Always Encrypted (deterministic encryption)
Always Encrypted encrypts column data such that the encryption keys are stored on the client and never revealed to the database engine. Deterministic encryption supports equality searches, making it suitable for this requirement.
- C
Row-Level Security (RLS)
Why wrong: RLS restricts which rows a user can see based on predicates, but it does not encrypt data. DBAs with 'sysadmin' can bypass RLS policies and see all rows in plaintext.
- D
Dynamic Data Masking (DDM)
Why wrong: DDM obfuscates data in query results based on user permissions, but the actual data is stored in plaintext and DBAs can easily query the original data.
AZ-500 Secure compute, storage, and databases Practice Question
This AZ-500 practice question tests your understanding of secure compute, storage, and databases. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 sensitive healthcare data in Azure SQL Database. They need to encrypt specific columns containing patient diagnosis codes so that even database administrators with the 'sysadmin' role cannot view the plaintext. The application must be able to perform equality searches (WHERE clauses) on the encrypted columns. Which encryption technology should 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
Always Encrypted (deterministic encryption)
Always Encrypted with deterministic encryption ensures that sensitive columns are encrypted at the client side, so the encryption keys are never revealed to the database engine, including sysadmin roles. Deterministic encryption generates the same ciphertext for the same plaintext, enabling equality searches (WHERE clauses) on encrypted columns without exposing plaintext data to the server.
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.
- ✗
Transparent Data Encryption (TDE)
Why it's wrong here
TDE encrypts the entire database at rest, but the database engine has access to the encryption keys, so DBAs with the 'sysadmin' role can still query and see plaintext data.
- ✓
Always Encrypted (deterministic encryption)
Why this is correct
Always Encrypted encrypts column data such that the encryption keys are stored on the client and never revealed to the database engine. Deterministic encryption supports equality searches, making it suitable for this requirement.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Row-Level Security (RLS)
Why it's wrong here
RLS restricts which rows a user can see based on predicates, but it does not encrypt data. DBAs with 'sysadmin' can bypass RLS policies and see all rows in plaintext.
- ✗
Dynamic Data Masking (DDM)
Why it's wrong here
DDM obfuscates data in query results based on user permissions, but the actual data is stored in plaintext and DBAs can easily query the original data.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse encryption at rest (TDE) with client-side column-level encryption, failing to recognize that TDE does not protect data from privileged users who can run queries, while Always Encrypted does by keeping keys off the server.
Detailed technical explanation
How to think about this question
Always Encrypted uses two types of encryption: deterministic (for equality searches) and randomized (for higher security but no search support). The encryption keys are stored in a trusted key store (e.g., Azure Key Vault, Windows Certificate Store) and are never transmitted to SQL Server; the client driver performs encryption/decryption using the keys. A real-world scenario is a healthcare application where patient diagnosis codes must be searchable (e.g., 'WHERE diagnosis_code = 'E11.9'') but even DBAs with full server control cannot read the actual codes.
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 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.
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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: Always Encrypted (deterministic encryption) — Always Encrypted with deterministic encryption ensures that sensitive columns are encrypted at the client side, so the encryption keys are never revealed to the database engine, including sysadmin roles. Deterministic encryption generates the same ciphertext for the same plaintext, enabling equality searches (WHERE clauses) on encrypted columns without exposing plaintext data to the server.
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.
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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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