Quick Answer
The answer is ./networking. This is correct because Terraform requires local module source paths to begin with either ./ or ../ to distinguish them from registry or remote module references, and ./networking explicitly points to the networking subdirectory within the same root module directory. On the HashiCorp Terraform Associate TF-003 exam, this tests your understanding of module source path syntax, a common trap being that ../networking would incorrectly navigate up one directory level instead of referencing a sibling subdirectory. A reliable memory tip is to think of the dot as meaning "current directory" — just as you would type ./script.sh to run a local script, you use ./modulename to reference a local module.
This TF-003 practice question tests your understanding of interact with terraform modules. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 developer creates a module in a subdirectory called 'networking' relative to the root module. How should the module source be specified in the root module?
./networking
The path starts with './' indicating a relative path from the current directory.
./modules/networking
Why wrong: This assumes a 'modules' subdirectory structure that does not exist.
../networking
Why wrong: This goes up one directory level, not down into the 'networking' subdirectory.
networking
Why wrong: Without './', Terraform may interpret this as a module registry name or alias, not a local path.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
./networking
Option A is correct because local module paths must start with './' or '../'. './networking' correctly references the 'networking' subdirectory relative to the root. Option B (../networking) would go up one level. Option C assumes a 'modules' subdirectory. Option D is not a valid relative path.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
./networking
Why this is correct
The path starts with './' indicating a relative path from the current directory.
Related concept
Static NAT maps one inside address to one outside address.
./modules/networking
Why it's wrong here
This assumes a 'modules' subdirectory structure that does not exist.
../networking
Why it's wrong here
This goes up one directory level, not down into the 'networking' subdirectory.
networking
Why it's wrong here
Without './', Terraform may interpret this as a module registry name or alias, not a local path.
Common exam traps
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Real-world example
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related TF-003 NAT questions on configuration and troubleshooting.
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FAQ
Interact with Terraform modules — This question tests Interact with Terraform modules — Static NAT maps one inside address to one outside address..
The correct answer is: ./networking — Option A is correct because local module paths must start with './' or '../'. './networking' correctly references the 'networking' subdirectory relative to the root. Option B (../networking) would go up one level. Option C assumes a 'modules' subdirectory. Option D is not a valid relative path.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related TF-003 NAT questions on configuration and troubleshooting.
Static NAT maps one inside address to one outside address.
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Same concept, more angles
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A developer creates a module in a subdirectory of their Terraform configuration and wants to reference it from the root module. The directory structure is: /terraform-project/modules/networking. Which source argument should they use in the module block?
mediumWhy C: A relative path starting with ./ is the correct way to reference a local module in a subdirectory of the root configuration. Option B is wrong because absolute paths are platform-dependent and not recommended. Option C is wrong because file:/// scheme is used for absolute file URIs, not relative. Option D is wrong because using the registry path would try to download from an external source, not local.
Variation 2. What is the most likely cause of this error?
mediumWhy B: Option C is correct because the error message indicates the module directory does not exist. Option A is incorrect because a version constraint is not relevant for local paths. Option B is incorrect because the required_version is satisfied. Option D is incorrect because the error is about module sourcing, not variable definition.
Last reviewed: Jun 24, 2026
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