- A
Vault credential
Correct. Vault credential stores an encrypted password that can be used for secrets like API tokens.
- B
Machine credential
Why wrong: Incorrect. Machine credential is for SSH authentication, not for storing arbitrary secrets.
- C
Network credential
Why wrong: Incorrect. Network credential is for network device authentication (e.g., SNMP).
- D
Cloud credential
Why wrong: Incorrect. Cloud credential is for cloud provider authentication (e.g., AWS, Azure).
Question 182 of 528
Using a Machine Credential to Securely Store an API Token
This EX294 practice question tests your understanding of manage inventories and credentials. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. A key principle to apply: vault Credential. 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.
An administrator needs to store a secret API token in Ansible Automation Controller so that it can be used in job templates without exposing the token in plain text. Which type of credential should be used?
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
✓
Vault credential
Option A is correct because a Vault credential in Ansible Automation Controller stores an encrypted password that can be used to decrypt Ansible Vault files. While originally designed for vault files, it can also be used to securely store any secret, such as an API token, by referencing it via the {{ vault_password }} variable in job templates. This ensures the token is never exposed in plain text. Machine credentials are for SSH authentication, Network credentials for network devices, and Cloud credentials for cloud provider APIs—none are suitable for storing arbitrary API tokens.
Key principle: Vault Credential
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Vault credential
Why this is correct
Correct. Vault credential stores an encrypted password that can be used for secrets like API tokens.
Related concept
Vault Credential
- ✗
Machine credential
Why it's wrong here
Incorrect. Machine credential is for SSH authentication, not for storing arbitrary secrets.
- ✗
Network credential
Why it's wrong here
Incorrect. Network credential is for network device authentication (e.g., SNMP).
- ✗
Cloud credential
Why it's wrong here
Incorrect. Cloud credential is for cloud provider authentication (e.g., AWS, Azure).
Common exam traps
Common exam trap: answer the scenario, not the keyword
Candidates often assume Machine credentials can store any secret due to the password field, but Machine credentials are intended for SSH host access and should not be repurposed for API tokens. Vault credentials provide proper encryption and are designed for secret storage.
Detailed technical explanation
How to think about this question
Under the hood, Ansible Automation Controller encrypts credential fields at rest using AES-256, and tokens stored in a Machine credential's password field are injected into job environments via environment variables or extra vars, never displayed in logs or UI. In real-world scenarios, administrators often use Machine credentials to store API tokens for REST API calls in playbooks, leveraging the `password` field to hold the token and referencing it with `{{ password }}` in tasks.
KKey Concepts to Remember
- Vault Credential
- Custom Credential Type
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
Vault Credential
Real-world example
How this comes up in practice
A practitioner preparing for the EX294 exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Vault Credential Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
Review vault Credential, then practise related EX294 questions on the same topic to reinforce the concept.
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Manage inventories and credentials — study guide chapter
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FAQ
Questions learners often ask
What does this EX294 question test?
Manage inventories and credentials — This question tests Manage inventories and credentials — Vault Credential.
What is the correct answer to this question?
The correct answer is: Vault credential — Option A is correct because a Vault credential in Ansible Automation Controller stores an encrypted password that can be used to decrypt Ansible Vault files. While originally designed for vault files, it can also be used to securely store any secret, such as an API token, by referencing it via the {{ vault_password }} variable in job templates. This ensures the token is never exposed in plain text. Machine credentials are for SSH authentication, Network credentials for network devices, and Cloud credentials for cloud provider APIs—none are suitable for storing arbitrary API tokens.
What should I do if I get this EX294 question wrong?
Review vault Credential, then practise related EX294 questions on the same topic to reinforce the concept.
What is the key concept behind this question?
Vault Credential
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Last reviewed: Jun 11, 2026
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