A Terraform output that sets the "sensitive" argument to true will not store that value in the state file.

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Multiple Choice

A Terraform output that sets the "sensitive" argument to true will not store that value in the state file.

Explanation:
The value of an output marked as sensitive is still stored in Terraform’s state. The sensitive attribute only controls what you see in human-facing output (for example, commands like terraform output won’t reveal the actual value and may show a placeholder). But Terraform continues to keep the real value in the state file so that other parts of the configuration can reference it and plans can proceed correctly. If you’re concerned about protecting that data at rest, you’d need to rely on the backend’s encryption and access controls, not the sensitive flag on the output.

The value of an output marked as sensitive is still stored in Terraform’s state. The sensitive attribute only controls what you see in human-facing output (for example, commands like terraform output won’t reveal the actual value and may show a placeholder). But Terraform continues to keep the real value in the state file so that other parts of the configuration can reference it and plans can proceed correctly. If you’re concerned about protecting that data at rest, you’d need to rely on the backend’s encryption and access controls, not the sensitive flag on the output.

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