- A
BlockBlobStorage account with infrastructure encryption
Why wrong: BlockBlobStorage is optimized for high transaction scenarios, not archival, and infrastructure encryption (double encryption) adds cost without being required.
- B
BlobStorage account with Hot access tier and default encryption
Why wrong: The Hot tier has higher storage costs and is not cost-effective for archival data.
- C
General-purpose v2 account with Cool access tier and default encryption
GPv2 accounts support Cool tier (low cost, retrieval within minutes) and default SSE with unique Microsoft-managed keys.
- D
General-purpose v1 account with Archive access tier and default encryption
Why wrong: Archive tier has retrieval times that can exceed 15 minutes (usually hours), and GPv1 accounts do not support all modern features.
Quick Answer
The answer is a General-purpose v2 (GPv2) storage account with the Cool access tier and default Microsoft-managed encryption. This configuration is correct because GPv2 accounts support the Cool tier, which offers cost-effective storage for rarely accessed archival data, while default Azure Storage Service Encryption (SSE) uses a unique Microsoft-managed key per storage account to satisfy the at-rest encryption policy. The Cool tier also enables blob rehydration within minutes, typically under 15 minutes, meeting the retrieval requirement. On the AZ-500 exam, this question tests your understanding of how encryption key management and access tiers intersect with storage account types—a common trap is choosing the Archive tier, which has a higher retrieval cost and longer rehydration time. Remember the memory tip: “Cool for quick retrieval, Archive for deep freeze; GPv2 gives you both tiers and default SSE keys.”
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 Blob Storage to store archival data that is rarely accessed. The security policy requires that the data must be encrypted at rest using a unique Microsoft-managed key per storage account, and the data must be stored cost-effectively while allowing retrieval within 15 minutes. Which storage account type and encryption configuration should they choose?
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
General-purpose v2 account with Cool access tier and default encryption
Option C is correct because a General-purpose v2 (GPv2) storage account supports the Cool access tier, which is cost-effective for rarely accessed data, and uses default Microsoft-managed encryption keys (SSE) that are unique per storage account. The Cool tier allows data retrieval within minutes (typically under 15 minutes for blob rehydration), meeting the recovery time objective.
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.
- ✗
BlockBlobStorage account with infrastructure encryption
Why it's wrong here
BlockBlobStorage is optimized for high transaction scenarios, not archival, and infrastructure encryption (double encryption) adds cost without being required.
- ✗
BlobStorage account with Hot access tier and default encryption
Why it's wrong here
The Hot tier has higher storage costs and is not cost-effective for archival data.
- ✓
General-purpose v2 account with Cool access tier and default encryption
Why this is correct
GPv2 accounts support Cool tier (low cost, retrieval within minutes) and default SSE with unique Microsoft-managed keys.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
General-purpose v1 account with Archive access tier and default encryption
Why it's wrong here
Archive tier has retrieval times that can exceed 15 minutes (usually hours), and GPv1 accounts do not support all modern features.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse the Archive tier's long retrieval time (up to 15 hours) with the Cool tier's near-instant access, or assume that a specialized account type like BlockBlobStorage is required for encryption features, when in fact default SSE on GPv2 meets the unique key requirement.
Trap categories for this question
Scenario analysis trap
BlockBlobStorage is optimized for high transaction scenarios, not archival, and infrastructure encryption (double encryption) adds cost without being required.
Detailed technical explanation
How to think about this question
Azure Storage Service Encryption (SSE) uses 256-bit AES encryption and is enabled by default for all storage accounts, with Microsoft-managed keys being unique per storage account. The Cool access tier has lower storage costs but higher access costs, and blobs in the Cool tier are immediately available for read operations without rehydration, unlike the Archive tier which requires rehydration that can take up to 15 hours. GPv2 accounts are the only account type that support all access tiers (Hot, Cool, Archive) and lifecycle management policies.
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 startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
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: General-purpose v2 account with Cool access tier and default encryption — Option C is correct because a General-purpose v2 (GPv2) storage account supports the Cool access tier, which is cost-effective for rarely accessed data, and uses default Microsoft-managed encryption keys (SSE) that are unique per storage account. The Cool tier allows data retrieval within minutes (typically under 15 minutes for blob rehydration), meeting the recovery time objective.
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
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
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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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