Quick Answer
The answer is to configure the password protection policy to enforce password history. This setting directly controls how many unique passwords a user must cycle through before they can reuse an old one, and by setting the value to 5, you ensure that none of the last five passwords can be reused during a password change. This works because Microsoft Entra ID stores a hash of each previous password, and the enforcement policy checks against that stored history before accepting a new password. On the MS-102 exam, this concept often appears in scenarios about fine-grained password policies, and a common trap is confusing password history with password expiration or lockout thresholds—remember that history is about reuse, not age. A useful memory tip is to think of it as a "reuse rotation": the history count is the number of old passwords you must leave behind before circling back to a favorite.
This MS-102 practice question tests your understanding of implement and manage microsoft entra identity and access. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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.
Your organization uses Microsoft Entra ID. You need to ensure that users cannot reuse their last 5 passwords when changing passwords. What should you configure?
Password protection policy - enforce password history.
Password protection policy includes password history settings.
Multi-factor authentication settings.
Why wrong: MFA does not enforce password history.
Account lockout threshold.
Why wrong: Account lockout controls lockout after failed attempts, not password reuse.
Smart lockout settings.
Why wrong: Smart lockout controls lockout after failed attempts.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Password protection policy - enforce password history.
The password history policy in Microsoft Entra ID (formerly Azure AD) enforces the number of unique passwords a user must use before they can reuse an old password. By setting the password history value to 5, users cannot reuse any of their last 5 passwords when changing their password. This directly meets the requirement to prevent reuse of the last 5 passwords.
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.
Password protection policy - enforce password history.
Why this is correct
Password protection policy includes password history settings.
Related concept
Read the scenario before looking for a memorised answer.
Multi-factor authentication settings.
Why it's wrong here
MFA does not enforce password history.
Account lockout threshold.
Why it's wrong here
Account lockout controls lockout after failed attempts, not password reuse.
Smart lockout settings.
Why it's wrong here
Smart lockout controls lockout after failed attempts.
Common exam traps
The trap here is that candidates often confuse password history (which prevents reuse) with password expiration or complexity settings, or they mistakenly think smart lockout or MFA can enforce password reuse rules.
Detailed technical explanation
The password history policy is part of the Password Protection policy in Entra ID and is enforced during password change operations via the Microsoft Graph API or self-service password reset (SSPR). The history is stored as a hash of each password, and the system compares new passwords against the stored history to ensure uniqueness. In a hybrid environment, this setting can also be synchronized with on-premises Active Directory using password writeback, but the history count is managed separately in each directory.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
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FAQ
Implement and manage Microsoft Entra identity and access — This question tests Implement and manage Microsoft Entra identity and access — Read the scenario before looking for a memorised answer..
The correct answer is: Password protection policy - enforce password history. — The password history policy in Microsoft Entra ID (formerly Azure AD) enforces the number of unique passwords a user must use before they can reuse an old password. By setting the password history value to 5, users cannot reuse any of their last 5 passwords when changing their password. This directly meets the requirement to prevent reuse of the last 5 passwords.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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