Practice Free Terraform-Associate-004 HashiCorp Certified: Terraform Associate (004) (HCTA0-004) Exam Questions Answers With Explanation

Rationale for Correct Answer:

C: Securely managed .tfvars files are acceptable if not committed to version control.

D: HCP Terraform provides secure storage for sensitive variables.

E: HashiCorp Vault is designed for secrets management and integrates with Terraform.

Analysis of Incorrect Options (Distractors):

A: Plaintext storage is insecure.

B: Secrets should never be committed to version control.

Key Concept:Sensitive values must be stored using secure secret management solutions.

Rationale for Correct Answer (B):

The file() function reads a file from disk and returns its content as a string. This is commonly used for public keys (.pub files).

Analysis of Incorrect Options:

A. fileset(): Returns a set of filenames matching a pattern, not file contents.

C. filebase64(): Reads file and returns Base64 encoded string — unnecessary for .pub.

D. templatefile(): Used for rendering templates with variables, not raw file contents.

Key Concept:

Terraform’s file() function is used for injecting file content directly.

In Terraform Cloud, you can switch between workspaces using both the web UI and CLI. The statement that you "must use the CLI" is false. Workspaces can securely store cloud credentials, offer role-based access control, and integrate with VCS to trigger plan and apply operations.

Speculative Plans: Terraform Cloud’sspeculative planfeature runs automatically when changes are detected in a linked VCS repository, enabling users to review potential infrastructure changes without committing them.

Automatic Integration: This feature automates the planning process by triggering when changes are committed, aiding teams in previewing infrastructure changes seamlessly.

For further understanding, see theTerraform Cloud VCS Integrationdocumentation.

Rationale for Correct Answer (B):

IaC best practice is to manage infrastructure through version-controlled code. Changes should be reviewed and approved (via PRs), ensuring collaboration, traceability, and automation.

Analysis of Incorrect Options:

A, D, E: Making direct/manual changes bypasses IaC practices and causes drift.

C: Running code without PR review skips collaboration and approval.

Key Concept:

Infrastructure as Code emphasizes version control + peer review + automation.

Setting the TF_LOG environment variable to DEBUG causes debug messages to be logged into stdout, along with other log levels such as TRACE, INFO, WARN, and ERROR. This can be useful for troubleshooting or debugging purposes.

These are some of the ways that a ticket-based system can slow down infrastructure provisioning and limit the ability to scale, as they introduce delays, bottlenecks, and manual interventions in the process of creating and modifying infrastructure.

Terraform allows usingprivate module sourceshosted in:

C (Internally hosted VCS platforms, e.g., GitLab, Bitbucket, GitHub Enterprise)?

D (Private GitHub repositories)?

A (Public GitHub repository)?–GitHubis supported, but apublic repo is not "private".

B (Public Terraform Registry)?–The public registryis not a private source.

Official Terraform Documentation Reference:

Terraform Module Sources

Terraform creates the .terraform.lock.hcl file after the first terraform init command. This lock file ensures that the dependencies for your project are consistent across different runs by locking the versions of the providers and modules used.

Terraform’s Indentation Standards: Terraform’s style convention usestwo spaces per nesting levelfor readability, helping to maintain uniform code across teams.

Configuration Files: Consistent indentation is crucial for Terraform’s HCL syntax, as it improves readability and avoids parsing issues.

More details are available in theTerraform configuration style guide.

The best way to automatically and proactively enforce the security control that new AWS S3 buckets must be private and encrypted at rest is with a Sentinel policy, which runs before every apply. Sentinel is a policy as code framework that allows you to define and enforce logic-based policies for your infrastructure. Terraform Cloud supports Sentinel policies for all paid tiers, and can run them before any terraform plan or terraform apply operation. You can write a Sentinel policy that checks the configuration of the S3 buckets and ensures that they have the proper settings for privacy and encryption, and then assign the policy to your Terraform Cloud organization or workspace. This way, Terraform Cloud will prevent any changes that violate the policy from being applied. References = [Sentinel Policy Framework], [Manage Policies in Terraform Cloud], [Write and Test Sentinel Policies for Terraform]

The terraform import command is used to import existing infrastructure into your Terraform state. This command takes the existing resource and associates it with a resource defined in your Terraform configuration, updating the state file accordingly. It does not generate configuration for the resource, only the state.

Terraform variable names are not saved in the state file, only their values are. The state file only stores the attributes of the resources and data sources that are managed by Terraform, not the variables that are used to configure them.

You do not need to use different Terraform commands depending on the cloud provider you use. Terraform commands are consistent across different providers, as they operate on the Terraform configuration files and state files, not on the provider APIs directly.

From Terraform CLI Overview:

"Terraform provides a consistent CLI workflow regardless of which cloud or service you’re managing."

Thesame Terraform commandswork across all providers via plugins.

Rationale for Correct Answer:terraform destroy removes all resources currently tracked in the Terraform state file by issuing destroy requests to the configured providers. It does not delete configuration files or providers themselves.

Analysis of Incorrect Options (Distractors):

B: Terraform never deletes configuration files.

C: Terraform only destroys resources it manages, not all provider infrastructure.

D: Terraform does not delete the state file by default.

Key Concept:terraform destroy enforces removal of all managed infrastructure.

Rationale for Correct Answers:

C. terraform.tfvars securely managed: Acceptable if distributed securely outside version control.

D. HCP Terraform/Terraform Cloud sensitive variables: Official best practice for team-based workflows.

E. Vault: HashiCorp Vault is designed for secret management and integrates well with Terraform.

Analysis of Incorrect Options:

A: Storing plaintext secrets on shared drives is insecure.

B: Checking secrets into version control is a major security risk.

Key Concept:

Sensitive values should be managed securely in Vault, HCP Terraform, or securely shared .tfvars files — never in plaintext or version control.

Terraform providers are not part of the Terraform core binary. Providers are distributed separately from Terraform itself and have their own release cadence and version numbers. Providers are plugins that Terraform uses to interact with various APIs, such as cloud providers, SaaS providers, and other services. You can find and install providers from the Terraform Registry, which hosts providers for most major infrastructure platforms. You can also load providers from a local mirror or cache, or develop your own custom providers. To use a provider in your Terraform configuration, you need to declare it in the provider requirements block and optionally configure its settings in the provider block. References = : Providers - Configuration Language | Terraform : Terraform Registry - Providers Overview | Terraform

The terraform init command is required before using a new backend or integrating with HCP Terraform/Terraform Cloud.

terraform init initializes the working directory and sets up the backend, downloading necessary provider plugins and modules.

If the backend configuration changes, Terraform willrequirere-initialization to apply those changes.

Without running terraform init, Terraform willfailto use a new backend or remote Terraform Cloud workspace.

Official Terraform Documentation Reference:

terraform init - HashiCorp Documentation

This is a key benefit of the Terraform state file, as it stores and tracks the metadata and attributes of the resources that are managed by Terraform, and allows Terraform to compare the current state with the desired state expressed by your configuration files.

Rationale for Correct Answer (B):

Provider version constraints in Terraform are specified using the version argument in the required_providers block, e.g.:

terraform {

required_providers {

aws = {

source = "hashicorp/aws"

version = "3.1"

}

}

}

This ensures Terraform always uses a specific provider version (or constraint expression).

Analysis of Incorrect Options:

A. version: Incomplete, no value specified.

C. version: 3.1: Incorrect syntax, Terraform uses = not :.

D. version - 3.1: Incorrect syntax, - is invalid here.

Key Concept:

Defining provider version constraints ensures consistent provider behavior across environments and avoids breaking changes.

terraform validateonlychecks the configuration’s syntax and internal consistency—itdoes notinteract with provider APIs or check if the infrastructure settings are correct.

It ensures that the Terraform code is syntactically correct and follows proper HCL structure.

However, it doesnotverify if resources are valid according to the provider API or if the credentials are correct.

To verify actual infrastructure settings, use terraform plan, which interacts with the provider APIs.

Official Terraform Documentation Reference:

terraform validate - HashiCorp Documentation

terraform validate does not confirm that your infrastructure matches the Terraform state file. It only checks whether the configuration files in a directory are syntactically valid and internally consistent3. To confirm that your infrastructure matches the Terraform state file, you need to use terraform plan or terraform apply with the -refresh-only option.

Terraform providers are not always installed from the Internet. There are other ways to install provider plugins, such as from a local mirror or cache, from a local filesystem directory, or from a network filesystem. These methods can be useful for offline or air-gapped environments, or for customizing the installation process. You can configure the provider installation methods using the provider_installation block in the CLI configuration file.

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 .

The command that makes your code more human readable is terraform fmt. This command is used to rewrite Terraform configuration files to a canonical format and style, following the Terraform language style conventions and other minor adjustments for readability. The command is optional, opinionated, and has no customization options, but it is recommended to ensure consistency of style across different Terraform codebases. Consistency can help your team understand the code more quickly and easily, making the use of terraform fmt very important. You can run this command on your configuration files before committing them to source control or as part of your CI/CD pipeline. References = : Command: fmt : Using Terraform fmt Command to Format Your Terraform Code

The required_providers block is used to specify the provider versions that the configuration can work with. The version argument accepts a version constraint string, which must be enclosed in double quotes. The version constraint string can use operators such as >=, ~>, =, etc. to specify the minimum, maximum, or exact version of the provider. For example, version = ">= 3.1" means that theconfiguration can work with any provider version that is 3.1 or higher. References = [Provider Requirements] and [Version Constraints]

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.

This will trigger a run in the Terraform Cloud workspace, which will perform a plan and apply operation on the infrastructure defined by the Terraform configuration files in the VCS repository.

Terraform can call modules from various sources including the public Terraform Registry, private registries, local file paths, or version control systems like GitHub.

This is the variable type that you could use for this input, as it can store multiple attributes of different types within a single value. The other options are either invalid or incorrect for this use case.

It is not a best practice to store secret data in the same version control repository as your Terraform configuration, as it could expose your sensitive information to unauthorized parties or compromise your security. You should use environment variables, vaults, or other mechanisms to store and provide secret data to Terraform.

This is where the Terraform local backend stores its state, by default, unless you specify a different file name or location in your configuration. The local backend is the simplest backend type that stores the state file on your local disk.

Terraform Cloud provides features like remote state storage and a web-based user interface for managing your Terraform runs. While it offers robust infrastructure as code capabilities, automatic backups of configuration and state are not directly provided by Terraform Cloud; instead, the state is stored remotely and secured.

Terraformis written in Go, but it isdistributed as a standalone binaryanddoes notrequire the Go runtime.

Users do not need to install Go to run Terraform.

Official Terraform Documentation Reference:

Terraform Install Guide

In Terraform, the max function can be used to select the largest number from a list of numbers. The max function takes multiple arguments and returns the highest one. For the list numcpus = [18, 3, 7, 11, 2], using max(numcpus...) will return 18, which is the largest number in the list.

The key principle of infrastructure as code that is not listed among the options is golden images. Golden images are pre-configured, ready-to-use virtual machine images that contain a specific set of software and configuration. They are often used to create multiple identical instances of the same environment, such as for testing or production. However, golden images are not a principle of infrastructure as code, but rather a technique that can be used with or without infrastructure as code. The other options are all key principles of infrastructure as code, as explained below:

Self-describing infrastructure: This means that the infrastructure is defined in code that describes its desired state, rather than in scripts that describe the steps to create it. This makes the infrastructure easier to understand, maintain, and reproduce.

Idempotence: This means that applying the same infrastructure code multiple times will always result in the same state, regardless of the initial state. This makes the infrastructure consistent and predictable, and avoids errors or conflicts caused by repeated actions.

Versioned infrastructure: This means that the infrastructure code is stored in a version control system, such as Git, that tracks the changes and history of the code. This makes the infrastructure code reusable, auditable, and collaborative, and enables practices such as branching, merging, and rollback. References = [Introduction to Infrastructure as Code with Terraform], [Infrastructure as Code in a Private or Public Cloud]

You can configure a backend in your Terraform code before initializing it. Initializing a backend will store the state file remotely and enable features like locking and workspaces. References = [Terraform Backends]

The terraform fmt command is used to format Terraform configuration files to a canonical format and style. This ensures that all team members are using a consistent style, making the code easier to read and maintain. It automatically applies Terraform's standard formatting conventions to your configuration files, helping maintain consistency across the team's codebase.

terraform validatechecks for syntax errors and internal consistencyin the configuration files.

However, itdoes notcheck if resource configurations are valid with the provider.

Official Terraform Documentation Reference:

terraform validate - HashiCorp Documentation

These are two ways to produce a list of the IDs from a list of objects that have an attribute id, using either a for expression or a splat expression syntax.

This is the command that lets you experiment with Terraform expressions, by providing an interactive console that allows you to evaluate expressions and see their results. You can use this command to test your expressions before using them in your configuration files.

This is a secure way to inject sensitive variables into your Terraform run, as they will not be stored in any file or source code repository. You can also use environment variables or variable files with encryption to pass sensitive variables to Terraform.

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.

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

From the official Terraform Type Constraints Documentation:

The object({ name = string, age = number }) type expects:

name to be aquoted string, e.g. "John"

age to be anumber, e.g. 52

Option Bsatisfies both:

{

name = "John" #?Valid string

age = 52 #?Valid number

}

Let's analyze the incorrect ones:

?Option A: "fifty two" is not a valid number.

?Option C: John is unquoted (invalid string), and "fifty two" is not a number.

?Option D: name = John is not quoted, making it an invalid string in HCL.

Terraform is strict about type and formatting. Stringsmust be quoted, and numbersmust be numeric literals.

The reason why the apply fails after adding a new provider to the configuration and immediately running terraform apply in the CD using the local backend is because Terraform needs to install the necessary plugins first. Terraform providers are plugins that Terraform uses to interact with various cloud services and other APIs. Each provider has a source address that determines where to downloadit from. When Terraform encounters a new provider in the configuration, it needs to run terraform init first to install the provider plugins in a local directory. Without the plugins, Terraform cannot communicate with the provider and perform the desired actions. References = [Provider Requirements], [Provider Installation]

 The concept of infrastructure as code (IaC) is to define and manage infrastructure using code, rather than manual processes or GUI tools. A script that contains a series of public cloud CLI commands is an example of IaC, because it uses code to provision resources into a public cloud. The other options are not examples of IaC, because they involve manual or interactive actions, such as running curl commands, sending REST requests, or entering commands into a console. References = [Introduction to Infrastructure as Code with Terraform] and [Infrastructure as Code]

The terraform state list command lists all resources that are managed by Terraform in the current state file1. The terraform state show command shows the attributes of a single resource in the state file2. By using these two commands, you can compare the VM IDs in your list with the ones in the state file and identify which one is managed by Terraform.

The terraform apply command changes both the cloud infrastructure and the state file after you approve the execution plan. The command creates, updates, or destroys the infrastructure resources to match theconfiguration. It also updates the state file to reflect the new state of the infrastructure. The .terraform directory, the execution plan, and the Terraform code are not changed by the terraform apply command. References = Command: apply and Purpose of Terraform State

The terraform state rm commandremovesa resource from Terraform’s state file butdoes not destroythe resource in the actual infrastructure. It only removes Terraform’s knowledge of the resource, meaning Terraform will no longer manage it.

If you run terraform state rm on a resource, Terraform will forget that the resource exists.

However, the resource will still exist in the cloud or infrastructure provider.

If you later run terraform apply, Terraform may try torecreatethe resource because it is no longer present in its state file.

Official Terraform Documentation Reference:

terraform state rm - HashiCorp Documentation

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.

A provider configuration block is not required in every Terraform configuration. A provider configuration block can be omitted if its contents would otherwise be empty. Terraform assumes an empty default configuration for any provider that is not explicitly configured. However, some providers may require some configuration arguments (such as endpoint URLs or cloud regions) before they can be used. A provider’s documentation should list which configuration arguments it expects. For providers distributed on the Terraform Registry, versioned documentation is available on each provider’s page, via the “Documentation” link in the provider’s header1. References = [Provider Configuration]1

The two steps that are required to provision new infrastructure in the Terraform workflow are init and apply. The terraform init command initializes a working directory containing Terraform configuration files. It downloads and installs the provider plugins that are needed for the configuration, and prepares the backend for storing the state. The terraform apply command applies the changes required to reach the desired state of the configuration, as described by the resource definitions in the configuration files. It shows a plan of the proposed changes and asks for confirmation before making any changes to the infrastructure. References = [The Core Terraform Workflow], [Initialize a Terraform working directory with init], [Apply Terraform Configuration with apply]

Rationale for Correct Answer (D):

The terraform.lock.hcl file is automatically created and maintained by Terraform. It records the specific versions and checksums of providers used in a configuration, ensuring consistent runs across environments and machines.

Analysis of Incorrect Options:

A. There is no such file: Incorrect — the lock file exists and is crucial for dependency management.

B. Storing references to workspaces: Incorrect — workspaces are tracked in the state file, not the lock file.

C. Preventing Terraform runs: Incorrect — the lock file does not block runs; it enforces consistent provider versions.

Key Concept:

The terraform.lock.hcl file enforces provider version consistency, which is critical for reproducible and reliable Terraform deployments.

The correct syntax to pass a variable from the root module to a child module isservers = var.num_servers. Terraform uses dot notation to reference variables.

A module cannot always refer to all variables declared in its parent module, as it needs to explicitly declare input variables and assign values to them from the parent module’s arguments. A module cannot access the parent module’s variables directly, unless they are passed as input arguments.

terraform apply can runwithout explicitly running terraform plan first.

Running terraform plan before apply isrecommendedbutnot mandatory.

If no plan file is provided, terraform applyautomatically creates and executes a planbefore applying changes.

Official Terraform Documentation Reference:

terraform apply - HashiCorp Documentation

Rationale for Correct Answer:Terraform local values are evaluated together and can reference previously defined local values within the same locals block or earlier blocks.

Analysis of Incorrect Options (Distractors):

B: Incorrect, locals can reference other locals.

Key Concept:Local values enable reuse and composition of expressions.

The terraform import command allows Terraform to takeexistinginfrastructure andbring it under Terraform’s management.

A (terraform get)is incorrect because it is used to fetch modules.

B (terraform refresh)is incorrect because it only updates Terraform's state to match the infrastructure but does not import resources.

D (terraform init)is incorrect because it only initializes the Terraform working directory.

Official Terraform Documentation Reference:

terraform import - HashiCorp Documentation

terraform init is the first command that should be run after writing a new Terraform configuration or cloning an existing one from version control. It initializes a working directory containing Terraform configuration files and downloads any required providers and modules. The other commands are used for different purposes, such as importing existing resources, switching between workspaces, generating execution plans, etc.

The Terraform Registry allows any user to publish and share modules. Published modules support versioning, automatically generate documentation, allow browsing version histories, show examples and READMEs, and more. Public modules are managed via Git and GitHub, and publishing a module takes only a few minutes. Once a module is published, releasing a new version of a module is as simple as pushing a properly formed Git tag1.

References = The information can be verified from the Terraform Registry documentation on Publishing Modules provided by HashiCorp Developer1.

Changes invoked by terraform apply take effect once the resource provider has fulfilled the request, not after Terraform has updated the state file or immediately. The state file is only a reflection of the real resources, not a source of truth.

You cannot reference a resource created with for_each using a splat (*) expression, as it will not work with resources that have non-numeric keys. You need to use a for expression instead to iterate over the resource instances.

B (terraform init)–Must be run firstto initialize the Terraform working directory, download providers, and configure the backend.

A (terraform apply)– Requires initialization first, so itcannotbe run before terraform init.

C (terraform plan)– Also requires terraform init first to generate a plan.

D (terraform show)– Displays the state,not relevantfor first-time deployment.

Official Terraform Documentation Reference:

terraform init - HashiCorp Documentation

The correct way to reference an attribute from the vsphere_datacenter data source for use with the datacenter_id argument within the vsphere_folder resource in the following configuration is data.vsphere_datacenter.dc.id. This follows the syntax for accessing data source attributes, which is data.TYPE.NAME.ATTRIBUTE. In this case, the data source type is vsphere_datacenter, the data source name is dc, and the attribute we want to access is id. The other options are incorrect becausethey either use the wrong syntax, the wrong punctuation, or the wrong case. References = [Data Source: vsphere_datacenter], [Data Source: vsphere_folder], [Expressions: Data Source References]

You must initialize your working directory before running terraform validate, as it will ensure that all the required plugins and modules are installed and configured properly. If you skip this step, you may encounter errors or inconsistencies when validating your configuration files.

Rationale for Correct Answer (True):

Local values (locals {}) are scoped to a module and are not directly visible outside. To make them available to callers, you must define outputs in the module. Outputs act as the interface for exposing values from a child module to the root module.

Analysis of Incorrect Option:

False: Incorrect, because locals cannot be exposed directly; only via outputs.

Key Concept:

Outputs are the way to expose information outside of a module.

Before using a remote backend in Terraform, it is mandatory to run terraform init. This command initializes a Terraform working directory, which includes configuring the backend. If a remote backend is specified, terraform init will set up the working directory to use it, including copying any existing state to the remote backend if necessary.References = This principle is a fundamental part of workingwith Terraform and its backends, as outlined in general Terraform documentation and best practices. The specific HashiCorp Terraform Associate (003) study materials in the provided files did not include direct references to this information.

This is the scenario that poses a challenge for this team, if they adopt AWS CloudFormation as their standardized method for provisioning public cloud resources, as CloudFormation only supports AWS services and resources, and cannot be used to provision infrastructure on other cloud platforms such as Azure.

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.

The terraform plan command is used to create an execution plan. It allows you to see what actions Terraform will take to reach the desired state defined in your configuration files. It evaluates the current state and configuration, showing a detailed outline of the resources that will be created, updated, or destroyed. This is a critical step in the development process as it helps you verify that the changes you are about to apply will perform as expected, without actually modifying any state or infrastructure.

This is how the Terraform Cloud integration differs from other state backends such as S3, Consul, etc., as it allows you to perform remote operations on Terraform Cloud’s servers instead of your local machine. The other options are either incorrect or irrelevant.