TERRAFORM-003 Practice Questions: Understand HCP Terraform capabilities Domain

Published: August 31, 2025 | 10 min read

Test your TERRAFORM-003 knowledge with 5 practice questions from the Understand HCP Terraform capabilities domain. Includes detailed explanations and answers.

TERRAFORM-003 Practice Questions

Master the Understand HCP Terraform capabilities Domain

Test your knowledge in the Understand HCP Terraform capabilities domain with these 5 practice questions. Each question is designed to help you prepare for the TERRAFORM-003 certification exam with detailed explanations to reinforce your learning.

Question 1

You are tasked with managing multiple environments (e.g., dev, staging, prod) using HCP Terraform. Which feature allows you to manage these environments within a single Terraform configuration?

A) Terraform Modules

B) Terraform Workspaces

C) Terraform Providers

D) Terraform Outputs

Show Answer & Explanation

Correct Answer: B

Explanation: Terraform Workspaces allow you to manage multiple environments within a single configuration by creating separate state files for each workspace. Option A, Modules, help organize and reuse code but don't manage separate environments. Option C, Providers, are used to interact with cloud services. Option D, Outputs, are used to return values from your configuration.

Question 2

You are using HCP Terraform with VCS-driven runs. What is a key advantage of this approach?

A) It allows for manual approval of each Terraform plan.

B) It automatically creates a new workspace for every commit.

C) It provides a consistent workflow by triggering runs on every code commit.

D) It eliminates the need for a backend configuration in Terraform.

Show Answer & Explanation

Correct Answer: C

Explanation: The key advantage of using VCS-driven runs is that it provides a consistent workflow by automatically triggering Terraform runs on every code commit. Option A is incorrect because manual approval is not a default feature of VCS-driven runs. Option B is incorrect because it does not automatically create new workspaces for each commit. Option D is incorrect because a backend configuration is still required.

Question 3

You are tasked with migrating an existing infrastructure state to HCP Terraform's remote backend. What is a crucial step to ensure state locking during this migration?

A) Configure the backend with state locking enabled.

B) Use 'terraform import' to migrate resources.

C) Run 'terraform plan' to verify state.

D) Manually lock the state file before migration.

Show Answer & Explanation

Correct Answer: A

Explanation: To ensure state locking, configure the backend with state locking enabled. HCP Terraform supports state locking natively. Option B, 'terraform import', is for importing resources, not related to state locking. Option C, 'terraform plan', verifies configuration but does not manage state locking. Option D is incorrect as manual locking is not a standard Terraform practice.

Question 4

You are managing infrastructure using HCP Terraform and have multiple environments for your application: development, testing, and production. Each environment uses different configurations. You want to ensure that changes are applied safely and in the correct order, especially when deploying new versions of your application. How can you best manage these environments using HCP Terraform workspaces to achieve this goal?

A) Use a single workspace for all environments and manage configurations using different variable files for each environment.

B) Create separate workspaces for each environment and use VCS-driven runs to automatically apply changes when new code is pushed.

C) Utilize one workspace and use `for_each` to iterate over different environments within your Terraform configuration.

D) Create separate workspaces for each environment and manually apply changes to each workspace using `terraform apply`.

Show Answer & Explanation

Correct Answer: B

Explanation: Using separate workspaces for each environment allows you to isolate state and configurations, ensuring that changes are applied safely and in the correct order. VCS-driven runs automate the process by applying changes whenever new code is pushed, reducing the risk of human error. Option A is incorrect because it does not isolate state between environments. Option C is incorrect because `for_each` is not suitable for managing separate environments. Option D is less efficient and more error-prone compared to automating with VCS-driven runs.

Question 5

You are managing infrastructure with Terraform on AWS. You need to ensure that a specific resource is always recreated during the next apply due to a configuration change. Which command should you use to achieve this without modifying the configuration files?

A) terraform apply -replace='aws_instance.example'

B) terraform taint aws_instance.example

C) terraform refresh aws_instance.example

D) terraform destroy -target='aws_instance.example'

Show Answer & Explanation

Correct Answer: A

Explanation: The correct command is 'terraform apply -replace='aws_instance.example''. This command will force Terraform to recreate the specified resource during the next apply. Option B is incorrect because 'terraform taint' is deprecated. Option C is incorrect because 'terraform refresh' is deprecated. Option D is incorrect because 'terraform destroy -target' will destroy the resource immediately, not during the next apply.

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The TERRAFORM-003 certification validates your expertise in understand hcp terraform capabilities and other critical domains. Our comprehensive practice questions are carefully crafted to mirror the actual exam experience and help you identify knowledge gaps before test day.

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