- A
Apply network security groups (NSGs) to subnets to control traffic between the VNets.
NSGs provide stateful filtering and can restrict traffic between peered VNets.
- B
Use Azure Firewall to inspect and filter traffic between the VNets.
Azure Firewall can be deployed as a central hub to inspect traffic between peered VNets, providing advanced filtering and logging.
- C
Use Azure VPN Gateway to create an encrypted tunnel between the VNets.
Why wrong: VNet peering traffic is already isolated and encrypted by Azure infrastructure; VPN Gateway is not needed and would add cost and complexity.
- D
Configure the peering to block all traffic by default and allow only specific subnets.
Why wrong: VNet peering does not have a built-in default deny; traffic flows between all resources unless restricted by NSGs or firewalls.
- E
Enable service endpoints on the subnets to restrict traffic to Azure services.
Why wrong: Service endpoints secure traffic to Azure services, not between VNets.
Quick Answer
The correct actions are to use Azure Firewall to inspect and filter traffic between the VNets and to apply network security groups (NSGs) on subnets to control allowed traffic. This works because VNet peering connects virtual networks over the Microsoft backbone, but by default all traffic is permitted; NSGs act as a distributed, stateful firewall at the subnet or NIC level to enforce least-privilege rules, while Azure Firewall provides centralized, application-aware inspection and logging for traffic crossing the peering link. On the AZ-500 exam, this question tests your understanding of securing traffic between peered Azure virtual networks without introducing unnecessary complexity—a common trap is assuming you need a VPN Gateway for encryption, but peering traffic is already private and encrypted within Azure’s backbone. Remember the memory tip: “Peering is private, so skip the VPN; NSGs filter locally, Firewall inspects centrally.”
AZ-500 Secure networking Practice Question
This AZ-500 practice question tests your understanding of secure networking. 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.
Which TWO actions should you take to secure traffic between Azure virtual networks using VNet peering? (Choose two.)
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
Apply network security groups (NSGs) to subnets to control traffic between the VNets.
Configuring network security groups (NSGs) on subnets controls traffic between peered VNets by allowing or denying specific traffic. Using VPN Gateway for encrypted peering (over the internet) is not correct because VNet peering traffic is private and encrypted by default within the Azure backbone; additional encryption is not required and VPN Gateway is not used for peering.
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.
- ✓
Apply network security groups (NSGs) to subnets to control traffic between the VNets.
Why this is correct
NSGs provide stateful filtering and can restrict traffic between peered VNets.
Related concept
CIDR notation defines the prefix length.
- ✓
Use Azure Firewall to inspect and filter traffic between the VNets.
- ✗
Use Azure VPN Gateway to create an encrypted tunnel between the VNets.
- ✗
Configure the peering to block all traffic by default and allow only specific subnets.
Why it's wrong here
VNet peering does not have a built-in default deny; traffic flows between all resources unless restricted by NSGs or firewalls.
- ✗
Enable service endpoints on the subnets to restrict traffic to Azure services.
Why it's wrong here
Service endpoints secure traffic to Azure services, not between VNets.
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.
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 healthcare organisation deploys an application with a public-facing web tier and a private database tier. The database subnet has no public IP and only accepts connections from the web tier's security group. Questions like this test whether you can design cloud network isolation using VNets/VPCs, subnets, and security group rules.
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
- →
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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: Apply network security groups (NSGs) to subnets to control traffic between the VNets. — Configuring network security groups (NSGs) on subnets controls traffic between peered VNets by allowing or denying specific traffic. Using VPN Gateway for encrypted peering (over the internet) is not correct because VNet peering traffic is private and encrypted by default within the Azure backbone; additional encryption is not required and VPN Gateway is not used for peering.
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.
What is the key concept behind this question?
CIDR notation defines the prefix length.
About these practice questions
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Last reviewed: Jun 20, 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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