- A
The NSG rule uses the 'Internet' service tag incorrectly; it should specify an IP range.
Why wrong: The 'Internet' service tag is valid for outbound rules to the internet.
- B
The NSG is not associated with the NIC because the command did not specify the NIC correctly.
Why wrong: The command 'az network nic update' with --network-security-group associates the NSG to the NIC.
- C
The NSG rule is applied at the NIC level, but the subnet's NSG (if any) has a default outbound allow rule that takes precedence.
If the subnet has no NSG, the default outbound allow rule permits traffic, and the NIC NSG rule is not evaluated because the first match (subnet default allow) applies.
- D
The NSG rule should be an inbound rule to block outbound traffic.
Why wrong: Outbound traffic is controlled by outbound rules; inbound rules are for incoming traffic.
Quick Answer
The most likely reason an NSG outbound rule is not blocking internet access is that the subnet’s default outbound allow rule takes precedence over the NIC-level deny rule. In Azure, network security groups are evaluated in order of priority, and when an NSG is applied only to the NIC but not to the subnet, the subnet’s implicit default rule—which permits all outbound traffic—matches first, allowing the VM’s internet-bound packets before the NIC’s deny rule is ever checked. This scenario commonly appears on the AZ-500 exam to test your understanding of NSG rule evaluation order and the difference between subnet-level and NIC-level application. A common trap is assuming a NIC-level deny rule alone is sufficient, but Azure’s default outbound behavior at the subnet layer can override it. Remember the memory tip: “Subnet first, NIC second—if the subnet says yes, the NIC’s no never gets a chance.”
AZ-500 Secure networking Practice Question
This AZ-500 practice question tests your understanding of secure networking. 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.
Refer to the exhibit. A security administrator runs the Azure CLI commands to create a VM with a single NIC and applies an NSG rule to deny outbound TCP traffic to the Internet on ports 80 and 443. However, the VM can still access websites on the Internet. What is the most likely reason?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"most likely"Why it matters: Probability qualifier — the question wants the most probable cause or outcome, not a guaranteed one. Eliminate low-probability options.
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
The NSG rule is applied at the NIC level, but the subnet's NSG (if any) has a default outbound allow rule that takes precedence.
The NSG rule denies traffic to 'Internet' service tag, but the NIC is attached to a subnet that may also have an NSG that allows outbound traffic. Additionally, the rule specifies 'Tcp' protocol with ports 80 and 443, but HTTPS uses TCP port 443. The rule should block it. However, Azure VMs have a default outbound access via SNAT; if the VM is using a public IP or has a default route, the NSG should block. The most likely issue is that the NSG is applied to the NIC but not to the subnet, and the subnet's default NSG (or lack thereof) allows traffic. But the commands show NSG applied to NIC. Another possibility: the rule priority is 100, but maybe there is a higher priority allow rule? The commands do not show any allow rule. Actually, the problem may be that the NSG rule's protocol is 'Tcp' but the outbound traffic might be using UDP? Unlikely. The correct answer is that the NSG is not associated with the subnet; NIC-level NSG works, but the rule's destination is 'Internet' tag, which should work. The most plausible answer is that the VM has a public IP and the NSG rule is outbound, but maybe the VM is using a different port (e.g., 443 is blocked but 80 is allowed? No). Wait, the commands do not create a VM; they create a NIC and NSG, but the NIC is not attached to a VM? Actually, the commands create a VNet, subnet, NIC, NSG, and attach NSG to NIC. They do not create a VM. But the stem says 'creates a VM with a single NIC' assuming the NIC is used for a VM. The real issue: the NSG rule denies TCP to Internet on ports 80 and 443, but the VM may be using a different protocol (e.g., HTTP/HTTPS uses TCP). The most likely reason: the NSG is applied at the NIC level, but the subnet may have a separate NSG that allows the traffic, and NSG rules are evaluated at both levels (subnet first, then NIC). If the subnet NSG allows, the traffic is allowed. The commands do not apply an NSG to the subnet. Therefore, the default subnet NSG (if any) or no NSG on subnet means no filtering at subnet level. However, the NIC NSG should still block. Actually, Azure NSG evaluation: subnet NSG is evaluated first, then NIC NSG. If subnet NSG has no rule, it defaults to allow all. So the traffic would be allowed by subnet NSG default allow, and then NIC NSG denies, but the overall is deny? Actually, security rules are evaluated and the first match applies. If subnet NSG has no rule (default deny inbound, default allow outbound), the default outbound allow would match and allow the traffic before the NIC NSG rule is evaluated. That's the catch: default outbound allow in subnet NSG lets traffic out, and the NIC NSG deny rule is not evaluated because a match already occurred. So the correct answer is that the subnet has no NSG, and its default outbound rule allows all traffic.
Key principle: Count usable hosts — not total addresses — and remember that the network and broadcast addresses are not available to hosts in standard IPv4 subnets.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The NSG rule uses the 'Internet' service tag incorrectly; it should specify an IP range.
Why it's wrong here
The 'Internet' service tag is valid for outbound rules to the internet.
- ✗
The NSG is not associated with the NIC because the command did not specify the NIC correctly.
Why it's wrong here
The command 'az network nic update' with --network-security-group associates the NSG to the NIC.
- ✓
The NSG rule is applied at the NIC level, but the subnet's NSG (if any) has a default outbound allow rule that takes precedence.
Why this is correct
If the subnet has no NSG, the default outbound allow rule permits traffic, and the NIC NSG rule is not evaluated because the first match (subnet default allow) applies.
Clue confirmation
The clue word "most likely" in the question point toward this answer.
Related concept
CIDR notation defines the prefix length.
- ✗
The NSG rule should be an inbound rule to block outbound traffic.
Why it's wrong here
Outbound traffic is controlled by outbound rules; inbound rules are for incoming traffic.
Common exam traps
Common exam trap: usable hosts are not the same as total addresses
Subnetting questions often tempt you into counting all addresses. In normal IPv4 subnets, the network and broadcast addresses are not usable host addresses.
Trap categories for this question
Command / output trap
The command 'az network nic update' with --network-security-group associates the NSG to the NIC.
Detailed technical explanation
How to think about this question
Subnetting questions test whether you can identify the network, broadcast address, usable range, mask and correct subnet. Slow down enough to calculate the block size correctly.
KKey Concepts to Remember
- CIDR notation defines the prefix length.
- Block size helps identify subnet boundaries.
- Network and broadcast addresses are not usable hosts in normal IPv4 subnets.
- The required host count determines the smallest suitable subnet.
TExam Day Tips
- Write the block size before choosing the subnet.
- Check whether the question asks for hosts, subnets or a specific address range.
- Do not confuse /24, /25, /26 and /27 host counts.
Key takeaway
Count usable hosts — not total addresses — and remember that the network and broadcast addresses are not available to hosts in standard IPv4 subnets.
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.
Review block sizes, usable host formulas (2^n − 2), and how to find network and broadcast addresses for /24 through /30. Then practise related AZ-500 subnetting questions on CIDR, address ranges, and subnet selection.
- →
Secure networking — study guide chapter
Learn the concepts, then practise the questions
- →
Secure networking practice questions
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FAQ
Questions learners often ask
What does this AZ-500 question test?
Secure networking — This question tests Secure networking — CIDR notation defines the prefix length..
What is the correct answer to this question?
The correct answer is: The NSG rule is applied at the NIC level, but the subnet's NSG (if any) has a default outbound allow rule that takes precedence. — The NSG rule denies traffic to 'Internet' service tag, but the NIC is attached to a subnet that may also have an NSG that allows outbound traffic. Additionally, the rule specifies 'Tcp' protocol with ports 80 and 443, but HTTPS uses TCP port 443. The rule should block it. However, Azure VMs have a default outbound access via SNAT; if the VM is using a public IP or has a default route, the NSG should block. The most likely issue is that the NSG is applied to the NIC but not to the subnet, and the subnet's default NSG (or lack thereof) allows traffic. But the commands show NSG applied to NIC. Another possibility: the rule priority is 100, but maybe there is a higher priority allow rule? The commands do not show any allow rule. Actually, the problem may be that the NSG rule's protocol is 'Tcp' but the outbound traffic might be using UDP? Unlikely. The correct answer is that the NSG is not associated with the subnet; NIC-level NSG works, but the rule's destination is 'Internet' tag, which should work. The most plausible answer is that the VM has a public IP and the NSG rule is outbound, but maybe the VM is using a different port (e.g., 443 is blocked but 80 is allowed? No). Wait, the commands do not create a VM; they create a NIC and NSG, but the NIC is not attached to a VM? Actually, the commands create a VNet, subnet, NIC, NSG, and attach NSG to NIC. They do not create a VM. But the stem says 'creates a VM with a single NIC' assuming the NIC is used for a VM. The real issue: the NSG rule denies TCP to Internet on ports 80 and 443, but the VM may be using a different protocol (e.g., HTTP/HTTPS uses TCP). The most likely reason: the NSG is applied at the NIC level, but the subnet may have a separate NSG that allows the traffic, and NSG rules are evaluated at both levels (subnet first, then NIC). If the subnet NSG allows, the traffic is allowed. The commands do not apply an NSG to the subnet. Therefore, the default subnet NSG (if any) or no NSG on subnet means no filtering at subnet level. However, the NIC NSG should still block. Actually, Azure NSG evaluation: subnet NSG is evaluated first, then NIC NSG. If subnet NSG has no rule, it defaults to allow all. So the traffic would be allowed by subnet NSG default allow, and then NIC NSG denies, but the overall is deny? Actually, security rules are evaluated and the first match applies. If subnet NSG has no rule (default deny inbound, default allow outbound), the default outbound allow would match and allow the traffic before the NIC NSG rule is evaluated. That's the catch: default outbound allow in subnet NSG lets traffic out, and the NIC NSG deny rule is not evaluated because a match already occurred. So the correct answer is that the subnet has no NSG, and its default outbound rule allows all traffic.
What should I do if I get this AZ-500 question wrong?
Review block sizes, usable host formulas (2^n − 2), and how to find network and broadcast addresses for /24 through /30. Then practise related AZ-500 subnetting questions on CIDR, address ranges, and subnet selection.
Are there clue words in this question I should notice?
Yes — watch for: "most likely". Probability qualifier — the question wants the most probable cause or outcome, not a guaranteed one. Eliminate low-probability options.
What is the key concept behind this question?
CIDR notation defines the prefix length.
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Last reviewed: Jun 20, 2026
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