Among the commonly used types of Slowly Changing Dimensions (SCD), Type 2 SCD is distinguished by appending new records to the table while marking old records as inactive. This is typically achieved through columns such as end_date or is_active, which can have values like True and False to indicate the current status of the record. Type 1 SCD overwrites old records, and Type 3 SCD tracks changes by adding new columns for current values while retaining the original ones. Therefore, Type 2 SCD is the correct answer.