What type of network does a VPN primarily extend?

Study for the Financial Information Associate Certificate Test with comprehensive questions, hints, and explanations. Prepare effectively and boost your confidence for the exam!

A Virtual Private Network (VPN) primarily extends a private network. This technology allows users to create a secure and encrypted connection over a less secure network, such as the internet. By doing this, a VPN enables a private network to extend beyond its physical boundaries, allowing remote users to access resources and communicate securely as if they were directly connected to the private network.

Additionally, the secure tunnels created by a VPN facilitate data transfer between devices and servers in the private network, protecting sensitive information from potential eavesdroppers or unauthorized access that may occur in public or shared environments.

While a VPN typically does not pertain specifically to wireless or local area networks, it operates on the principle of securing data transmission between private endpoints, making it an essential tool for maintaining privacy and security in digital communications.

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