- A
Store the secret ARN in a Terraform variable and use 'var.secret_arn' in the resource.
Why wrong: The ARN is not sensitive, but the secret value still needs retrieval; this does not address state exposure.
- B
Store the secret in AWS Systems Manager Parameter Store and reference it using 'data.aws_ssm_parameter'.
Why wrong: While this retrieves the secret, it can still appear in state if not handled properly; also, Secrets Manager is already in use.
- C
Pass the secret as an environment variable to Terraform and reference it with 'var.secret_value'.
Why wrong: Environment variables can be captured in state if used in resources, leading to exposure.
- D
Use the 'data.aws_secretsmanager_secret_version' data source and mark the attribute as 'sensitive = true' in the output.
The data source retrieves the secret, and marking outputs as sensitive prevents them from being shown in logs or state.
Quick Answer
The answer is to use the `data.aws_secretsmanager_secret_version` data source and mark the attribute as `sensitive = true` in the output. This approach is correct because the data source retrieves the secret value at plan time without writing the actual payload into the Terraform state file—Terraform only stores the data source’s ID and metadata, not the sensitive value itself. On the AWS Certified DevOps Engineer Professional DOP-C02 exam, this question tests your understanding of how to manage Terraform secrets with AWS Secrets Manager while avoiding state file exposure, a common trap being that candidates confuse output sensitivity with state file protection. The key distinction is that `sensitive = true` only hides the value from CLI output, but the real security comes from the data source’s design to never persist the secret. Memory tip: think “data source, not state source”—the secret lives in Secrets Manager, not in your `.tfstate`.
DOP-C02 Configuration Management and IaC Practice Question
This DOP-C02 practice question tests your understanding of configuration management and iac. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A DevOps engineer manages infrastructure using Terraform. The team needs to store secrets such as database passwords in a secure manner and reference them in Terraform configurations. They have configured AWS Secrets Manager. What is the recommended approach to reference secrets in Terraform without exposing them in state 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
Use the 'data.aws_secretsmanager_secret_version' data source and mark the attribute as 'sensitive = true' in the output.
Option D is correct because using the `data.aws_secretsmanager_secret_version` data source retrieves the secret value at plan time without storing it in the Terraform state file. Marking the attribute as `sensitive = true` in the output prevents the value from being displayed in the CLI output, but the key protection is that the secret value itself is never written to the state file when using this data source — Terraform only stores the data source's ID and metadata, not the actual secret payload.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Store the secret ARN in a Terraform variable and use 'var.secret_arn' in the resource.
Why it's wrong here
The ARN is not sensitive, but the secret value still needs retrieval; this does not address state exposure.
- ✗
Store the secret in AWS Systems Manager Parameter Store and reference it using 'data.aws_ssm_parameter'.
Why it's wrong here
While this retrieves the secret, it can still appear in state if not handled properly; also, Secrets Manager is already in use.
- ✗
Pass the secret as an environment variable to Terraform and reference it with 'var.secret_value'.
Why it's wrong here
Environment variables can be captured in state if used in resources, leading to exposure.
- ✓
Use the 'data.aws_secretsmanager_secret_version' data source and mark the attribute as 'sensitive = true' in the output.
Why this is correct
The data source retrieves the secret, and marking outputs as sensitive prevents them from being shown in logs or state.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates assume marking an output as `sensitive = true` alone protects the secret, but the real protection comes from the data source not storing the secret value in the state file — the `sensitive` flag only controls CLI display, not state persistence.
Detailed technical explanation
How to think about this question
Under the hood, the `data.aws_secretsmanager_secret_version` data source uses the AWS Secrets Manager API to fetch the secret value during the `terraform plan` or `terraform apply` phase. Terraform stores the data source's arguments (like `secret_id` and `version_id`) in the state file, but the `secret_string` attribute is intentionally omitted from the state because it is marked as sensitive in the provider's schema. This behavior is enforced by the Terraform AWS provider, which treats the `secret_string` as a sensitive attribute that is never persisted to disk. In real-world scenarios, this prevents secrets from leaking into version-controlled state files or logs, which is critical for compliance with standards like SOC 2 or PCI DSS.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this DOP-C02 question test?
Configuration Management and IaC — This question tests Configuration Management and IaC — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Use the 'data.aws_secretsmanager_secret_version' data source and mark the attribute as 'sensitive = true' in the output. — Option D is correct because using the `data.aws_secretsmanager_secret_version` data source retrieves the secret value at plan time without storing it in the Terraform state file. Marking the attribute as `sensitive = true` in the output prevents the value from being displayed in the CLI output, but the key protection is that the secret value itself is never written to the state file when using this data source — Terraform only stores the data source's ID and metadata, not the actual secret payload.
What should I do if I get this DOP-C02 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
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