HashiCorp Terraform-Associate-004 Exam (page: 3)
HashiCorp Certified: Terraform Associate (004)
Updated on: 12-Feb-2026

Variables declared within a module are accessible outside of the module.

  1. True
  2. False

Answer(s): B

Explanation:

Variables declared within a module are only accessible within that module, unless they are explicitly exposed as output values1.



Your security team scanned some Terraform workspaces and found secrets stored in plaintext in state files. How can you protect that data?

  1. Edit your state file to scrub out the sensitive data
  2. Always store your secrets in a secrets.tfvars file
  3. Delete the state file every time you run Terraform
  4. Store the state in an encrypted backend

Answer(s): D

Explanation:

This is a secure way to protect sensitive data in the state file, as it will be encrypted at rest and in transit2. The other options are not recommended, as they could lead to data loss, errors, or security breaches.



If you update the version constraint in your Terraform configuration, Terraform will update your lock file the next time you run terraform Init.

  1. True
  2. False

Answer(s): A

Explanation:

If you update the version constraint in your Terraform configuration, Terraform will update your lock file the next time you run terraform init3. This will ensure that you use the same provider versions across different machines and runs.



Once you configure a new Terraform backend with a terraform code block, which command(s) should you use to migrate the state file?

  1. terraform destroy, then terraform apply
  2. terraform init
  3. terraform push
  4. terraform apply

Answer(s): A

Explanation:

This command will initialize the new backend and prompt you to migrate the existing state file to the new location4. The other commands are not relevant for this task.



What does Terraform use the .terraform.lock.hc1 file for?

  1. There is no such file
  2. Tracking specific provider dependencies
  3. Preventing Terraform runs from occurring
  4. Storing references to workspaces which are locked

Answer(s): B

Explanation:

The .terraform.lock.hcl file is a new feature in Terraform 0.14 that records the exact versions of each provider used in your configuration. This helps ensure consistent and reproducible behavior across different machines and runs.



Why does this backend configuration not follow best practices?

  1. An alias meta-argument should be included in backend blocks whenever possible
  2. You should use the local enhanced storage backend whenever possible
  3. You should not store credentials in Terraform configuration
  4. The backend configuration should contain multiple credentials so that more than one user can execute terraform plan and terraform apply

Answer(s): C

Explanation:

This is a bad practice, as it exposes your credentials to anyone who can access your configuration files or state files. You should use environment variables, credential files, or other mechanisms to provide credentials to Terraform.



Module variable assignments are inherited from the parent module and you do not need to explicitly set them.

  1. True
  2. False

Answer(s): B

Explanation:

Module variable assignments are not inherited from the parent module and you need to explicitly set them using the source argument. This allows you to customize the behavior of each module instance.



What does Terraform not reference when running a terraform apply -refresh-only ?

  1. State file
  2. Credentials
  3. Cloud provider
  4. Terraform resource definitions in configuration files

Answer(s): D

Explanation:

When running a terraform apply -refresh-only, Terraform does not reference the configuration files, but only the state file, credentials, and cloud provider. The purpose of this command is to update the state file with the current status of the real resources, without making any changes to them1.



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