Which type of memory setting is used when creating the virtual machine?

Dynamic memory is utilized when creating a virtual machine to allow the system to allocate and adjust memory resources according to the workload requirements of the virtual machine. This functionality enables the operating system to start with a smaller amount of memory and then increase it as needed, optimizing resource usage on the host machine.

Dynamic memory improves efficiency by allowing multiple virtual machines to share available physical memory dynamically, making it ideal for environments where workloads can fluctuate significantly. This feature also enhances performance, as it reduces the likelihood of memory contention between virtual machines, leading to better overall system responsiveness.

In contrast to dynamic memory, options like static memory or fixed memory do not allow for this flexibility and may limit the performance and scalability of the virtual machine in changing workloads. While dynamically expanding memory allows for the potential of growth, it does not dynamically adjust allocated memory in real-time, thus differentiating it from the capabilities of dynamic memory.