TERRAFORM-ASSOCIATE-004 Question #181: Real Exam Question with Answer & Explanation

The correct answer is B: False. Terraform state files are not automatically encrypted by default. Sensitive values are stored in plaintext within the state file. However, you can protect the state file by using remote backends that support encryption, such as AWS S3 with server-side encryption enabled or Terraf

Submitted by lars.no· Apr 18, 2026Manage Terraform State

Question

Terraform encrypts sensitive values stored in your state file.

Options

ATrue
BFalse

Explanation

Terraform state files are not automatically encrypted by default. Sensitive values are stored in plaintext within the state file. However, you can protect the state file by using remote backends that support encryption, such as AWS S3 with server-side encryption enabled or Terraform Cloud, which offers encrypted state storage.

Topics

#Terraform state#State file security#Sensitive data#Encryption

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