Which statement best describes inactive records?

Inactive records are those that have completed their primary administrative functions and are no longer actively utilized in day-to-day operations. However, they may still hold archival value, meaning they provide historical context, legal evidence, or important information that could be relevant for future reference or research. This characteristic is essential because it highlights the importance of preserving such records, even when they are not frequently accessed.

Understanding inactive records in this way underscores the balance between the need to maintain space and manage current data while also recognizing the long-term significance of certain documents. In contrast, the other statements suggest misunderstandings about the nature of inactive records; they are not high in demand nor regularly discarded without consideration, and there is no requirement for them to be stored digitally. These aspects help clarify why acknowledging the potential archival value of inactive records is essential for effective records management.