Terraform-Associate-003 HashiCorp Certified: Terraform Associate (003) (HCTA0-003) Free Practice Exam Questions (2025 Updated)

The public Terraform Module Registry is free to use, as it is a public service that hosts thousands of self-contained packages called modules that are used to provision infrastructure. You can browse, use, and publish modules to the registry without any cost.

terraform graphgeneratesGraphviz DOT formatoutput, which allows visualization ofresource dependenciesin Terraform.

A (terraform refresh)– Incorrect, as it only updates the state file.

C (terraform output)– Incorrect, as it only displays Terraform output values.

D (terraform show)– Incorrect, as it only displays the Terraform state.

Official Terraform Documentation Reference:

terraform graph - HashiCorp Documentation

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.

The terraform plan command does not update the state file. Instead, it reads the current state and the configuration files to determine what changes would be made to bring the real-world infrastructure into the desired state defined in the configuration. The plan operation is a read-only operation and does not modify the state or the infrastructure. It is the terraform apply command that actually applies changes and updates the state file.References = Terraform's official guidelines and documentation clarify the purpose of the terraform plan command, highlighting its role in preparing and showing an execution plan without making any changes to the actual state or infrastructure .

Theversion argumentin a module ensures Terraform uses aspecific versionof a module, preventing unintended updates.

A (source)– Specifies the module source butdoes not control versioning.

B (count)– Controls how many instances of a resource/module exist,not updates.

D (lifecycle)– Controls how resources behavebut does not control module versioning.

Official Terraform Documentation Reference:

Module Version Constraints

When the state file is locked, operations that modify or depend on the state (liketerraform apply,terraform destroy, andterraform state list) are blocked.terraform fmtonly formats the configuration files and does not interact with the state, so it is allowed.

The description argument for Terraform variables and outputs is purely for documentation purposes and isnotstored in the Terraform state file.

Terraform variables and outputs can have descriptions for readability and clarity in .tf files.

However, these descriptions are not retained in the Terraform state file.

The state file only stores actual values and references needed for resource management, not metadata such as descriptions.

Official Terraform Documentation Reference:

Terraform Variables - HashiCorp Documentation

Terraform Outputs - HashiCorp Documentation

Terraform Cloud includes several features designed to enhance collaboration and infrastructure management. Two of these features are:

A web-based user interface (UI): This allows users to interact with Terraform Cloud through a browser, providing a centralized interface for managing Terraform configurations, state files, and workspaces.

Remote state storage: This feature enables users to store their Terraform state files remotely in Terraform Cloud, ensuring that state is safely backed up and can be accessed by team members as needed.

None of the above methods prevent credentials from being stored in the state file. Terraform stores the provider configuration in the state file, which may include sensitive information such as credentials. This is a potential security risk and should be avoided if possible. To prevent credentials from being stored in the state file, you can use one of the following methods:

Use environment variables to pass credentials to the provider. This way, the credentials are not part of the provider configuration and are not stored in the state file. However, this method may not work for some providers that require credentials to be set in the provider block.

Use dynamic credentials to authenticate with your cloud provider. This way, Terraform Cloud or Enterprise will request temporary credentials from your cloud provider for each run and use them to provision your resources. The credentials are not stored in the state file and are revoked after the run is completed. This method is supported for AWS, Google Cloud Platform, Azure, and Vault. References = : [Sensitive Values in State] : Authenticate providers with dynamic credentials

The default “local” Terraform backend stores the state file in a local file named terraform.tfstate, which can be used to track and manage the state of your infrastructure3.

Option C is the correct way to configure multiple providers in a Terraform configuration. Each provider block must have a name attribute that specifies which provider it configures2. The other options are either missing the name attribute or using an invalid syntax.

From the Terraform Provider Requirements:

">= 3.0" means any versiongreater than or equal to 3.0— including 4.x and beyond.

A (wrong): Would need >= 3.0, < 4.0

C/D (wrong): > excludes 3.0 — not what’s written.

To prevent two Terraform runs from changing the same state file simultaneously, state locking is used. State locking ensures that when one Terraform operation is running, others will be blocked from making changes to the same state, thus preventing conflicts and data corruption. This is achieved by configuring the state backend to support locking, which will lock the state for all operations that could write to the state.References = This information is supported by Terraform's official documentation, which explains the importance of state locking and how it can be configured for different backends to prevent concurrent state modifications .

The terraform validate command is used to check that your Terraform configuration files are syntactically valid and internally consistent. It is a useful command for ensuring your Terraform code is error-free before applying any changes to your infrastructure.

This command will upgrade the plugins to the latest acceptable version within the version constraints specified in the configuration. The other commands do not have an -upgrade option.

Detailed Explanation:

Rationale for Correct Answer (True):Variables without defaults are required inputs. If the calling module doesn’t supply a value, Terraform will fail with an error at plan time.

Analysis of Incorrect Option:

False: Incorrect, because Terraform does not assume defaults when none are provided.

Key Concept:Terraform modules enforce required vs. optional variables depending on whether a default is set.

This is one disadvantage of using dynamic blocks in Terraform, as they can introduce complexity and reduce readability of the configuration. The other options are either advantages or incorrect statements.

Detailed Explanation:

Rationale for Correct Answer (A):data blocks fetch information from providers (like AMI IDs, network info) that can be used in other resources.

Analysis of Incorrect Options:

B. local: Stores values, doesn’t fetch external data.

C. resource: Defines managed infrastructure, not read-only data.

D. provider: Configures connection to APIs, not data fetching.

Key Concept:Data sources are read-only queries into existing infrastructure.

Detailed Explanation:

Rationale for Correct Answer (A):Providers only interact with one specific platform or API. Terraform itself can work with multiple providers in one configuration, but a single provider is not responsible for provisioning across multiple cloud providers.

Analysis of Incorrect Options:

B. Managing actions to take based on resource differences: This is a provider responsibility (through the resource schema).

C. Managing resources and data sources based on an API: Correct — providers define resources/data sources and map them to API calls.

D. Understanding API interactions with a hosted service: Correct — providers encapsulate API logic to allow Terraform to manage resources.

Key Concept:Providers are API adapters. They handle CRUD operations for resources in their own ecosystem but do not span across multiple cloud platforms.