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Which of the following is the correct way to describe On-Demand Instances pricing?

easy📝 Conceptual Q3 of 15
AWS - EC2 Fundamentals
Which of the following is the correct way to describe On-Demand Instances pricing?
APay per hour or second of usage with no long-term commitment
BPay a fixed monthly fee regardless of usage
CPay only when the instance is stopped
DPay upfront for a reserved capacity
Step-by-Step Solution
Solution:
  1. Step 1: Understand On-Demand pricing

    On-Demand Instances charge based on actual usage time, billed per hour or second, with no commitment.
  2. Step 2: Eliminate incorrect options

    Fixed monthly fee and upfront payment apply to other models; paying only when stopped is incorrect.
  3. Final Answer:

    Pay per hour or second of usage with no long-term commitment -> Option A
  4. Quick Check:

    On-Demand = pay as you go [OK]
Quick Trick: On-Demand = pay only for what you use [OK]
Common Mistakes:
  • Thinking On-Demand requires upfront payment
  • Confusing with Reserved pricing
  • Assuming fixed monthly fee applies

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