Which of the following is true about the execution environment for PROC FEDSQL?

PROC FEDSQL is designed to operate in a flexible execution environment that can handle data across various sources, including distributed databases. This capability is significant because it allows users to leverage the power of multiple databases and perform SQL queries seamlessly, without being confined to a single database or local files.

The ability to operate over distributed databases means that PROC FEDSQL can integrate and query data from different systems, enabling more comprehensive data analysis and reporting. This is particularly beneficial in organizations with data spread across multiple platforms, as it helps facilitate data-driven decision-making by offering a unified SQL interface.

In contrast, while being connected to a SAS server is a common requirement for many procedures, it does not define the full capability of PROC FEDSQL. The other options suggest restrictions that do not align with the designed functionality of PROC FEDSQL, which emphasizes versatility and connectivity with diverse databases.