- A
Create a private endpoint for Key Vault in the same VNet as the VM and disable public network access on the Key Vault.
Private endpoints use private IPs from the VNet, keeping traffic off the internet. Disabling public access ensures only private endpoint traffic is accepted.
- B
Enable the Key Vault firewall and add the VM's public IP address to the allowed list.
Why wrong: This allows access but traffic goes over the public internet, violating the requirement to avoid the public internet.
- C
Use a service endpoint for Key Vault on the VM's subnet, and assign a managed identity to the VM.
Why wrong: Service endpoints provide connectivity over the Azure backbone without public IP, but the traffic still uses public-facing endpoints. Private endpoints are explicitly required for private connectivity.
- D
Assign a system-assigned managed identity to the VM and grant it access to the Key Vault.
Why wrong: Managed identity provides authentication but does not ensure that the network path is private.
Quick Answer
The correct choice is to create a private endpoint for Key Vault in the same VNet as the VM and disable public network access on the Key Vault. This configuration works because a private endpoint assigns a private IP address from the VM’s virtual network to the Key Vault, routing all traffic exclusively over the Microsoft Azure backbone network and eliminating any exposure to the public internet. By then disabling public network access on the Key Vault firewall, you enforce that only connections through the private endpoint are permitted, effectively locking down access to that specific vault. On the AZ-500 exam, this scenario tests your understanding of network segmentation and data exfiltration prevention—a common trap is assuming a service endpoint alone suffices, but service endpoints still rely on the public endpoint for routing, whereas private endpoints provide true isolation. A helpful memory tip: think of the private endpoint as a “direct tunnel” from your VM to the vault, and disabling public access as “locking the front door” so only the tunnel works.
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 uses Azure Key Vault to store secrets for their applications. They want to ensure that an application hosted on an Azure virtual machine can access secrets from only a specific Key Vault, and that all traffic between the VM and Key Vault remains within the Azure network and does not traverse the public internet. Which configuration 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
Create a private endpoint for Key Vault in the same VNet as the VM and disable public network access on the Key Vault.
Option A is correct because it combines a private endpoint for Azure Key Vault with disabling public network access. A private endpoint assigns a private IP address from the VM's VNet to the Key Vault, ensuring all traffic stays within the Microsoft Azure backbone network and never traverses the public internet. Disabling public network access on the Key Vault firewall then blocks any attempts to access the vault via its public endpoint, enforcing that only traffic through the private endpoint is allowed.
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.
- ✓
Create a private endpoint for Key Vault in the same VNet as the VM and disable public network access on the Key Vault.
Why this is correct
Private endpoints use private IPs from the VNet, keeping traffic off the internet. Disabling public access ensures only private endpoint traffic is accepted.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Enable the Key Vault firewall and add the VM's public IP address to the allowed list.
Why it's wrong here
This allows access but traffic goes over the public internet, violating the requirement to avoid the public internet.
- ✗
Use a service endpoint for Key Vault on the VM's subnet, and assign a managed identity to the VM.
Why it's wrong here
Service endpoints provide connectivity over the Azure backbone without public IP, but the traffic still uses public-facing endpoints. Private endpoints are explicitly required for private connectivity.
- ✗
Assign a system-assigned managed identity to the VM and grant it access to the Key Vault.
Why it's wrong here
Managed identity provides authentication but does not ensure that the network path is private.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse service endpoints with private endpoints, not realizing that service endpoints still use the public endpoint of the resource and do not provide true private IP-based isolation, while private endpoints assign a private IP and can fully disable public access.
Detailed technical explanation
How to think about this question
Azure Private Endpoint uses a network interface with a private IP from the VNet, leveraging DNS resolution to redirect traffic to the private endpoint instead of the public endpoint. Under the hood, the private endpoint is backed by Azure Private Link, which uses a virtual network gateway to route traffic through the Microsoft backbone, bypassing the internet entirely. In a real-world scenario, this is critical for compliance with regulations like PCI-DSS or HIPAA that require data to never leave a private network boundary.
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.
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: Create a private endpoint for Key Vault in the same VNet as the VM and disable public network access on the Key Vault. — Option A is correct because it combines a private endpoint for Azure Key Vault with disabling public network access. A private endpoint assigns a private IP address from the VM's VNet to the Key Vault, ensuring all traffic stays within the Microsoft Azure backbone network and never traverses the public internet. Disabling public network access on the Key Vault firewall then blocks any attempts to access the vault via its public endpoint, enforcing that only traffic through the private endpoint is allowed.
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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