CCAR-F Claude Code Configuration and Workflows Practice Question
A developer wants to ensure that Claude Code automatically uses a specific set of custom instructions for every session in a particular repository, without requiring manual invocation. They want these instructions to be version-controlled and applied to all team members. Which approach should they take?
⚠ Common exam trap
The trap here is assuming that global user settings or environment variables can serve as a substitute for project-level, version-controlled instruction files.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Create a CLAUDE.md file at the root of the repository containing the custom instructions.
Placing a CLAUDE.md file at the repository root is the standard way to provide project-wide custom instructions that are automatically loaded by Claude Code. It is version-controlled, ensuring all team members benefit from the same guidance. Other methods like global user files or environment variables do not meet the requirement of being repository-specific and shared.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Create a CLAUDE.md file at the root of the repository containing the custom instructions.
Why this is correct
CLAUDE.md at the repository root is automatically read by Claude Code at the start of every session within that project. It can contain custom instructions, guidelines, and context. Because it is part of the repository, it can be version-controlled and shared with the team, ensuring consistent behavior across all members.
- ✗
Add the instructions to the user's global ~/.claude/CLAUDE.md file.
Why it's wrong here
The global ~/.claude/CLAUDE.md is user-specific and not shared via version control. While it would apply to all projects for that user, it would not affect other team members. The requirement is for repository-wide, team-shared instructions, so this approach fails to meet the collaboration and version-control aspects.
- ✗
Create a .claude/instructions.json file and reference it in the project settings.
Why it's wrong here
Claude Code does not use an instructions.json file for custom instructions. The supported method is a Markdown file named CLAUDE.md. JSON configuration files are not part of the documented workflow for providing session instructions, so this approach would be ineffective and not automatically applied.
- ✗
Set an environment variable CLAUDE_INSTRUCTIONS with the desired text.
Why it's wrong here
Claude Code does not support an environment variable named CLAUDE_INSTRUCTIONS for injecting custom instructions. While environment variables can influence some settings, there is no documented mechanism to provide persistent, version-controlled instructions this way. This method would also not be automatically shared with the team.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Anthropic exam blueprint
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