Exam Terraform-Associate-004 Topic 1 Question 48 Discussion

Actual exam question for HashiCorp's Terraform-Associate-004 exam
Question #: 48
Topic #: 1
Terraform encrypts sensitive values stored in your state file.

Suggested Answer: B Vote an answer

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.
References:
Terraform State

by Cyril at Jan 28, 2026, 02:09 PM

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