Terraform Associate Practice Exam

Terraform can utilize multiple types of backends to manage state, which is critical for tracking changes in the infrastructure over time. A file-based backend stores state locally on the file system, typically in a file like `terraform.tfstate`. This option is practical for small projects or local development.

A remote backend, on the other hand, stores state files on a remote server or service, such as Amazon S3, HashiCorp Consul, or Terraform Cloud. This approach is beneficial for teams as it enables collaboration and guarantees that everyone is working with the most up-to-date state.

Additionally, the local backend is synonymous with the file-based backend since it also stores the state on the local file system, which is the default configuration when no other backend is specified.

Given that all these forms of backends are valid configurations that Terraform can use, it is accurate to state that Terraform supports all of the backends mentioned, making the selected answer comprehensive and correct. Each type of backend serves different needs, ultimately providing flexibility in how state management is handled within Terraform.