The correct answer is that the storage account uses a customer-managed key (CMK) from Azure Key Vault. This is determined by the JSON property `"keySource": "Microsoft.Keyvault"`, which explicitly indicates that the encryption key is sourced from a customer-controlled Azure Key Vault instance, rather than from Microsoft’s platform-managed keys. On the Microsoft Azure Security Engineer Associate AZ-500 exam, this distinction tests your ability to read Azure Resource Manager (ARM) JSON outputs and understand encryption configuration differences. A common trap is confusing `Microsoft.Keyvault` with `Microsoft.Storage`—the latter signals Microsoft-managed keys, while the former confirms CMK. Remember that CMK also requires a key URI, name, and version to be present in the JSON, as seen here. For memory, think: “Keyvault in the source means customer in control; Storage in the source means Microsoft on patrol.”
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.
Refer to the exhibit. You are reviewing the JSON output of an Azure Storage account encryption configuration. What can you conclude about the encryption settings?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
The storage account uses a customer-managed key from Azure Key Vault.
Option C is correct. The JSON shows 'keySource': 'Microsoft.Keyvault' indicating customer-managed keys (CMK). The key name, version, and vault URI are provided. Option A is wrong because platform-managed keys use 'Microsoft.Storage' as keySource. Option B is wrong because the configuration shows both blob and file encryption enabled. Option D is wrong because the configuration uses CMK, not SSE (which uses Microsoft-managed keys).
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.
✓
The storage account uses a customer-managed key from Azure Key Vault.
Why this is correct
keySource: Microsoft.Keyvault indicates CMK.
Related concept
Read the scenario before looking for a memorised answer.
✗
The encryption configuration is incomplete because keyVersion is '1'.
Why it's wrong here
keyVersion is valid.
✗
Only blob storage is encrypted; file storage is not.
Why it's wrong here
Both blob and file have enabled: true.
✗
The storage account uses platform-managed keys (SSE).
Why it's wrong here
keySource is Microsoft.Keyvault, not Microsoft.Storage.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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 media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-500 question in full detail.
Identify which AZ-500 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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: The storage account uses a customer-managed key from Azure Key Vault. — Option C is correct. The JSON shows 'keySource': 'Microsoft.Keyvault' indicating customer-managed keys (CMK). The key name, version, and vault URI are provided. Option A is wrong because platform-managed keys use 'Microsoft.Storage' as keySource. Option B is wrong because the configuration shows both blob and file encryption enabled. Option D is wrong because the configuration uses CMK, not SSE (which uses Microsoft-managed keys).
What should I do if I get this AZ-500 question wrong?
Identify which AZ-500 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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 →
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. You are reviewing an Azure Resource Manager template for a storage account. The exhibit shows a snippet of the template. Which statement about the template is true?
medium
A.Encryption is disabled for the storage account.
B.The storage account will use customer-managed keys from Azure Key Vault.
✓ C.The storage account will use Microsoft-managed keys for encryption.
D.Encryption is enabled only for blob storage.
Why C: The template shows encryption enabled for blob and file services using Microsoft-managed keys (keySource: Microsoft.Storage). Option A is correct. Option B is wrong because key source is not Key Vault. Option C is wrong because encryption is for both blob and file. Option D is wrong because encryption is not disabled.
Last reviewed: Jun 20, 2026
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