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To list all installed packages using YUM, the command "yum list installed" is the correct choice. This command specifically requests a list of packages that are currently installed on the system, presenting them in a clear and organized format. It provides useful details such as the package name, version, and repository from which it was installed.

The option that involves "yum search installed" does not actually list installed packages. Instead, it is intended for searching available packages that match the term provided. "yum list all" is used to show all available packages in the repositories, not just those that are installed. The command "rpm -qa" is a valid command for querying installed RPM packages, but it falls outside the realm of YUM, which is a higher-level package manager that interfaces with RPM and provides additional functionalities, including dependency resolution.

Therefore, "yum list installed" directly fulfills the need to view all packages that are currently installed via the YUM package manager, making it the appropriate and most suitable option for this specific task.