In order to connect to a target device through PSM, the account credentials used for...

 In order to connect to a target device through PSM, the account credentials used for the connection do not necessarily have to be stored in the vault. The user can also enter credentials manually using Secure Connect, which is a feature that enables users to connect to target systems through PSM without storing the account credentials in the vault. Secure Connect allows users to provide their own credentials at the time of connection, and these credentials are not saved or managed by CyberArk. Secure Connect can be used with any connection component that supports PSM, such as RDP, SSH, WinSCP, etc. To use Secure Connect, the user needs to specify the target system address and the connection component ID in the URL, and then enter the credentials in the PSM login screen1.

The other options are not correct, because:

A. True. This is not correct, because as explained above, the user can also enter credentials manually using Secure Connect.

C. False. Because if credentials are not stored in the vault, the PSM will log into the target device as PSM Connect. This is not correct, because PSM Connect is a predefined user that is created on the PSM server during the installation. This user is used to establish the connection between the PSM server and the target server, and to run the PSM processes. The PSM Connect user is not used to log into the target device as the end user2.

D. False. Because if credentials are not stored in the vault, the PSM will prompt for credentials. This is not correct, because this option is essentially the same as Secure Connect, which is the correct answer.

References:

1: Secure Connect

2: PSMConnect and PSMAdminConnect