Quick Answer
The answer is an auto-labeling policy for sensitivity labels. This is correct because Microsoft Purview Information Protection uses sensitive info types to detect patterns like credit card numbers, and an auto-labeling policy then applies the specified 'Highly Confidential' sensitivity label along with its configured encryption automatically, without requiring user intervention. On the MS-102 exam, this scenario tests your understanding of the distinction between auto-labeling, which applies classification and protection, and Data Loss Prevention policies, which only alert or block—a common trap where candidates confuse DLP’s detection with labeling. Remember that retention labels handle lifecycle, not encryption, and the sensitivity label must be published to a policy before auto-labeling can use it. A useful memory tip: think of auto-labeling as the “set it and forget it” way to enforce both classification and encryption, while DLP is the “watchdog” that barks but doesn’t stamp.
This MS-102 practice question tests your understanding of deploy and manage a microsoft 365 tenant. 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. 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.
You are configuring Microsoft Purview Information Protection for your tenant. You need to ensure that documents containing credit card numbers are automatically labeled as 'Highly Confidential' and encrypted. Which two components must you configure?
A data loss prevention (DLP) policy.
Why wrong: Incorrect: DLP policies enforce actions but do not apply sensitivity labels.
A sensitive info type for credit card numbers.
Correct: Required to detect the sensitive data.
An auto-labeling policy for sensitivity labels.
Correct: Required to automatically apply the label and encryption.
A retention label.
Why wrong: Incorrect: Retention labels are for retention, not classification.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
A sensitive info type for credit card numbers.
Sensitive info types detect credit card numbers, and auto-labeling policies apply the label and encryption automatically. Option A is wrong because DLP policies alert but don't label. Option B is wrong because retention labels are for retention, not classification. Option D is wrong because the sensitivity label must be published first.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
A data loss prevention (DLP) policy.
Why it's wrong here
Incorrect: DLP policies enforce actions but do not apply sensitivity labels.
A sensitive info type for credit card numbers.
Why this is correct
Correct: Required to detect the sensitive data.
Related concept
Read the scenario before looking for a memorised answer.
An auto-labeling policy for sensitivity labels.
Why this is correct
Correct: Required to automatically apply the label and encryption.
Related concept
Read the scenario before looking for a memorised answer.
A retention label.
Why it's wrong here
Incorrect: Retention labels are for retention, not classification.
Common exam traps
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Identify which MS-102 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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FAQ
Deploy and manage a Microsoft 365 tenant — This question tests Deploy and manage a Microsoft 365 tenant — Read the scenario before looking for a memorised answer..
The correct answer is: A sensitive info type for credit card numbers. — Sensitive info types detect credit card numbers, and auto-labeling policies apply the label and encryption automatically. Option A is wrong because DLP policies alert but don't label. Option B is wrong because retention labels are for retention, not classification. Option D is wrong because the sensitivity label must be published first.
Identify which MS-102 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 21, 2026
This MS-102 practice question is part of Courseiva's free Microsoft 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 MS-102 exam.
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