TERRAFORM-ASSOCIATE-004 Question #143: Real Exam Question with Answer & Explanation

The correct answer is C: You should not store credentials in Terraform configuration. Storing credentials (such as access keys, passwords, or tokens) directly in Terraform configuration files is a critical security anti-pattern. Configuration files are typically committed to version control systems (e.g., Git), where sensitive credentials become part of the histor

Submitted by parkjh· Apr 18, 2026Manage Terraform State

Question

Why does this backend configuration not follow best practices?

Options

AAn alias meta-argument should be included in backend blocks whenever possible
BYou should use the local enhanced storage backend whenever possible
CYou should not store credentials in Terraform configuration
DThe backend configuration should contain multiple credentials so that more than one user can

Explanation

Storing credentials (such as access keys, passwords, or tokens) directly in Terraform configuration files is a critical security anti-pattern. Configuration files are typically committed to version control systems (e.g., Git), where sensitive credentials become part of the history and are visible to anyone with repo access. Best practices include using environment variables, a secrets manager (like HashiCorp Vault), or provider-specific authentication mechanisms (like AWS IAM roles) to supply credentials at runtime instead of hardcoding them.

Topics

#Security Best Practices#Backend Configuration#Credential Management#State Management

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