- A
A module source can be a local file system path.
Local paths are valid module sources.
- B
Modules can only be sourced from the public Terraform Registry.
Why wrong: Modules can come from many sources, including private repos.
- C
Running 'terraform plan' automatically downloads any missing modules.
Why wrong: terraform init is required to download modules.
- D
A module source can be a Git repository URL using the SSH protocol.
Git SSH URLs are supported.
- E
The module source is defined in a separate 'source' block within the module.
Why wrong: The source is a string argument inside the module block, not a separate block.
TF-003 Interact with Terraform modules Practice Question
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.
Which TWO statements about Terraform module sources are correct? (Select TWO.)
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
A module source can be a local file system path.
Option A is correct because Terraform allows module sources to be local file system paths, enabling you to reference modules stored on your local machine. This is useful for developing and testing modules before publishing them, and the path can be relative or absolute, such as `./modules/my-module` or `/home/user/modules/my-module`.
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.
- ✓
A module source can be a local file system path.
Why this is correct
Local paths are valid module sources.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Modules can only be sourced from the public Terraform Registry.
Why it's wrong here
Modules can come from many sources, including private repos.
- ✗
Running 'terraform plan' automatically downloads any missing modules.
Why it's wrong here
terraform init is required to download modules.
- ✓
A module source can be a Git repository URL using the SSH protocol.
Why this is correct
Git SSH URLs are supported.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
The module source is defined in a separate 'source' block within the module.
Why it's wrong here
The source is a string argument inside the module block, not a separate block.
Common exam traps
Common exam trap: answer the scenario, not the keyword
HashiCorp often tests the misconception that `terraform plan` handles module downloads, when in fact only `terraform init` performs this action, and that modules are limited to the public registry, ignoring local paths and private Git sources.
Detailed technical explanation
How to think about this question
Terraform module sources support a variety of version control protocols, including Git over SSH (e.g., `git@github.com:hashicorp/example.git`), HTTPS, and Mercurial. When using Git SSH sources, Terraform relies on the system's SSH configuration and keys for authentication, and the `ref` argument can pin to a specific branch, tag, or commit. This flexibility allows teams to use private repositories without exposing credentials in the configuration.
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 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
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
- →
Interact with Terraform modules — study guide chapter
Learn the concepts, then practise the questions
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Interact with Terraform modules practice questions
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HashiCorp Terraform Associate TF-003 study guide
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TF-003 practice test guide
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FAQ
Questions learners often ask
What does this TF-003 question test?
Interact with Terraform modules — This question tests Interact with Terraform modules — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: A module source can be a local file system path. — Option A is correct because Terraform allows module sources to be local file system paths, enabling you to reference modules stored on your local machine. This is useful for developing and testing modules before publishing them, and the path can be relative or absolute, such as `./modules/my-module` or `/home/user/modules/my-module`.
What should I do if I get this TF-003 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.
About these practice questions
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Last reviewed: Jun 30, 2026
This TF-003 practice question is part of Courseiva's free HashiCorp certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the TF-003 exam.
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