- 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.
DOP-C02 AWS Secrets Manager 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. A key principle to apply: aWS Secrets Manager. 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 `data.aws_secretsmanager_secret_version` retrieves the secret value and, when paired with `sensitive = true` in the output, prevents the value from being displayed in CLI output or logs. However, the secret value is still stored in the Terraform state file (encrypted at rest). The true protection comes from restricting access to the state file, enabling encryption, and using the `sensitive` attribute to avoid accidental exposure. AWS recommends storing secrets securely and treating state files as sensitive.
Key principle: AWS Secrets Manager
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
AWS Secrets Manager
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap is that candidates believe using a data source like `data.aws_secretsmanager_secret_version` automatically keeps secrets out of the state file. However, Terraform stores all data source results in state. The `sensitive = true` attribute only prevents display in CLI output, not storage in state. The real protection is to secure the state file with encryption and strict access controls.
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
- AWS Secrets Manager
- Terraform Data Source
- sensitive = true
- State File Security
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
AWS Secrets Manager
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
Got this wrong? Here's your next step.
Review aWS Secrets Manager, then practise related DOP-C02 questions on the same topic to reinforce the concept.
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Configuration Management and IaC — study guide chapter
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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 — AWS Secrets Manager.
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 `data.aws_secretsmanager_secret_version` retrieves the secret value and, when paired with `sensitive = true` in the output, prevents the value from being displayed in CLI output or logs. However, the secret value is still stored in the Terraform state file (encrypted at rest). The true protection comes from restricting access to the state file, enabling encryption, and using the `sensitive` attribute to avoid accidental exposure. AWS recommends storing secrets securely and treating state files as sensitive.
What should I do if I get this DOP-C02 question wrong?
Review aWS Secrets Manager, then practise related DOP-C02 questions on the same topic to reinforce the concept.
What is the key concept behind this question?
AWS Secrets Manager
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Last reviewed: Jun 11, 2026
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