Explanation:
A recovery catalog should be created in the database different from the target database, and it's better if it will be different from the primary database machine.
Incorrect Answers:
1: Never create a recovery catalog in the target database.
2: Never create a recovery catalog in the source(target) database.
3: There is no auditory database defined by default in Oracle.
Oracle 8, DBA Certification Exam Guide, Jason S. Couchman, p. 617-619
Chapter 13: Using Recovery Manager for backups

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