The correct answer is true. An Application Load Balancer can route traffic based on the domain name specified in the Host header, a feature known as host-based routing. This allows for a multi-tenant architecture where different domains are served by different backend systems, all through a single Application Load Balancer. Incorrect answers may confuse the capabilities of an Application Load Balancer with those of a Simple or Classic Load Balancer, or may underestimate the advanced routing features provided by an ALB.