Which statement best describes encryption in data security?

Study for the Business Essentials Objective 5.00 Business Technology Test. Engage with multiple choice questions and hints. Prepare confidently for your exam!

Multiple Choice

Which statement best describes encryption in data security?

Encryption hides information by turning readable data into ciphertext using an algorithm and a key. Only someone with the correct key can decrypt and read it. This protects data both in transit over networks and at rest on storage, because without the key the data remains unreadable even if it’s intercepted or accessed by someone unauthorized. That’s why this statement is the best description—it explicitly covers data in transit and data at rest and explains how protection is achieved.

The other ideas don’t fit as well: encryption doesn’t make data faster to access and can add some processing overhead; it’s a digital protection method, not solely about physical security; and it’s not a firewall, which is a separate control that monitors and blocks network traffic.

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