For testing readability during storage, which observation verifies passwords are unreadable?

• A. Observe password files to verify unreadable during storage.
• B. They are stored in plaintext.
• C. They are not encrypted in transit.
• D. Passwords are never stored.

Answer: (A)

This tests whether stored passwords are unreadable. To verify unreadability, you would inspect the actual password storage and confirm it contains hashed (and salted) values rather than plaintext. If the storage shows readable passwords, it means they are not unreadable and security is breached; hashed storage protects passwords from being read even if the storage is accessed.

Why the other ideas don’t fit: plaintext storage would be easily readable, defeating the purpose of unreadable storage. Not encrypted in transit relates to data in transit, not how passwords are stored. And while in practice passwords are not kept in plaintext, saying they are “never stored” is not accurate for system design; the important point is that stored passwords should be unreadable (typically via hashing with salt), which is what this observation aims to confirm.