Which statement about Reserved Instances is true?

Which statement about Reserved Instances is true?

• A. You pay for the reservation only when it is applied to a resource
• B. Reservations cost money, but they offset the cost of resources in your account
• C. You pay for the reservation regardless of whether it is applied to a resource
• D. You do not need to utilize a reservation completely to save money

Answer: (C)

Reserved Instances are a capacity commitment with a fixed price for a set term. The key idea is that you pay for the reservation up front or in monthly installments, and that payment happens whether or not the reserved capacity is actually used by a running resource. The discount you get applies when you run eligible instances, but the reservation cost is incurred regardless of usage. That’s why the true statement is that you pay for the reservation regardless of whether it is applied to a resource. The other descriptions mix accuracy and precision. A suggests you only pay when the reservation is applied, which isn’t how RIs are billed. B hints at an offset that isn’t guaranteed if the reserved capacity isn’t utilized. D implies you can save without fully using the reservation, which isn’t a reliable outcome since savings accrue from matching usage to the reservation.

Reserved Instances are a capacity commitment with a fixed price for a set term. The key idea is that you pay for the reservation up front or in monthly installments, and that payment happens whether or not the reserved capacity is actually used by a running resource. The discount you get applies when you run eligible instances, but the reservation cost is incurred regardless of usage. That’s why the true statement is that you pay for the reservation regardless of whether it is applied to a resource.

The other descriptions mix accuracy and precision. A suggests you only pay when the reservation is applied, which isn’t how RIs are billed. B hints at an offset that isn’t guaranteed if the reserved capacity isn’t utilized. D implies you can save without fully using the reservation, which isn’t a reliable outcome since savings accrue from matching usage to the reservation.