Step 1: Understanding file extensions
Each application saves files with a specific extension to indicate the type of content and associated software.
Step 2: Microsoft Word document extension
Microsoft Word uses the \texttt{.docx} extension for documents.
This format was introduced with Word 2007 and is based on XML for better compatibility and smaller file size.
Step 3: Eliminate incorrect options
\texttt{.pptx}: Used for Microsoft PowerPoint presentations.
\texttt{.xlsx}: Used for Microsoft Excel spreadsheets.
\texttt{.exe}: Executable files for running programs, not documents.
Step 4: Conclusion
Thus, \texttt{.docx} is the correct extension used for saving Word documents.