- A
Transparent Data Encryption (TDE)
Why wrong: TDE encrypts the database at rest, but the data is decrypted for the server process, so database administrators with access to the server can view plaintext data. It does not protect against DBAs.
- B
Always Encrypted
Always Encrypted encrypts sensitive columns at the client side, ensuring that the data is never exposed in plaintext to the server or DBAs. Only the client application with the column master key can decrypt the data.
- C
Dynamic Data Masking (DDM)
Why wrong: DDM obfuscates data to non-privileged users when querying, but the data is still stored in plaintext. It does not provide encryption at rest or protect against DBAs who can see unmasked data.
- D
Row-Level Security (RLS)
Why wrong: RLS restricts access to rows based on user context, but it does not encrypt data. DBAs with elevated permissions can bypass RLS policies.
AZ-500 Secure compute, storage, and databases Practice Question
This AZ-500 practice question tests your understanding of secure compute, storage, and databases. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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 SQL Database and wants to protect sensitive data (e.g., credit card numbers) from database administrators. They require that the data is encrypted at rest and in transit, and only a client application using a specific driver can decrypt it. Which 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
Always Encrypted is the correct choice because it ensures that sensitive data (e.g., credit card numbers) is encrypted both at rest and in transit, and the encryption keys are never exposed to the database engine. Only a client application using the Always Encrypted-enabled driver (e.g., ADO.NET with Column Encryption Setting=enabled) can decrypt the data, protecting it from database administrators or any unauthorized access to the database 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 database at rest, but the data is decrypted for the server process, so database administrators with access to the server can view plaintext data. It does not protect against DBAs.
- ✓
Always Encrypted
Why this is correct
Always Encrypted encrypts sensitive columns at the client side, ensuring that the data is never exposed in plaintext to the server or DBAs. Only the client application with the column master key can decrypt the data.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Dynamic Data Masking (DDM)
Why it's wrong here
DDM obfuscates data to non-privileged users when querying, but the data is still stored in plaintext. It does not provide encryption at rest or protect against DBAs who can see unmasked data.
- ✗
Row-Level Security (RLS)
Why it's wrong here
RLS restricts access to rows based on user context, but it does not encrypt data. DBAs with elevated permissions can bypass RLS policies.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Transparent Data Encryption (TDE) with Always Encrypted because both involve encryption, but TDE does not protect data from database administrators or encrypt data in transit, which is the core requirement in this scenario.
Detailed technical explanation
How to think about this question
Always Encrypted uses a two-tier key hierarchy: a column master key (CMK) stored in a trusted key store (e.g., Azure Key Vault, Windows Certificate Store) and a column encryption key (CEK) that encrypts the column data. The client driver performs encryption and decryption locally, ensuring the database engine only sees ciphertext; this prevents even sysadmins from viewing sensitive data. A subtle behavior is that Always Encrypted supports deterministic encryption for equality searches but not for range queries or LIKE operations, which can impact application design.
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: Always Encrypted — Always Encrypted is the correct choice because it ensures that sensitive data (e.g., credit card numbers) is encrypted both at rest and in transit, and the encryption keys are never exposed to the database engine. Only a client application using the Always Encrypted-enabled driver (e.g., ADO.NET with Column Encryption Setting=enabled) can decrypt the data, protecting it from database administrators or any unauthorized access to the database 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.
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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