HashiCorp Certified: Terraform Associate — Question 228

If you don't use the local backend, where does Terraform save resource state?

Answer options

• A. In the remote backend or Terraform Cloud
• B. On the disk
• C. In memory
• D. In an environment variable

Correct answer: A

Explanation

The correct answer is A because when a local backend is not used, Terraform can store the state in a remote backend or Terraform Cloud to ensure it is accessible for team collaboration and version control. Options B, C, and D are incorrect because they suggest local or temporary storage, which does not align with Terraform's cloud capabilities.