Convertible Reserved Instances are a more flexible option and are available only for EC2 instances. Which statement is true?

• A. They can be exchanged across any region and any service
• B. They can change the term freely from 1 year to 5 years
• C. They reduce the overall commitment automatically when price drops
• D. They are only for EC2 instances and can be exchanged for other reservations

Answer: (D)

Convertible Reserved Instances provide flexibility by letting you adjust your EC2 reservations later if your needs change, while still preserving most of the cost benefits. They are applicable only to EC2, not to other AWS services. The key feature is that you can exchange a Convertible RI for another reservation that better fits your updated requirements—this can involve a different instance type, operating system, or tenancy, with any value difference settled accordingly. This makes the statement true: these RIs are for EC2 and can be exchanged for other reservations. They aren’t across arbitrary regions or services, term lengths aren’t freely changed, and there’s no automatic reduction of the commitment when prices drop.