- A
Auto-labeling policies
Correct. Auto-labeling policies automatically apply sensitivity labels based on conditions.
- B
Data Loss Prevention (DLP) policies
Why wrong: Incorrect. DLP policies prevent sharing but do not manage retention.
- C
eDiscovery
Why wrong: Incorrect. eDiscovery is for searching content, not retention or deletion.
- D
Retention labels
Correct. Retention labels define how long to retain and when to delete.
- E
Sensitivity labels
Correct. Sensitivity labels can classify content containing credit card numbers.
MS-900 Describe Microsoft 365 apps and services Practice Question
This MS-900 practice question tests your understanding of describe microsoft 365 apps and services. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.
A company uses Microsoft 365 E5. They want to automatically retain all documents containing credit card numbers for 3 years and then delete them. Which THREE Microsoft Purview features should they use?
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
Auto-labeling policies
Auto-labeling policies (A) are correct because they can automatically apply sensitivity labels to documents containing sensitive information types like credit card numbers, based on conditions defined in the policy. This enables the automatic classification of content, which is a prerequisite for applying retention labels that enforce the 3-year retention and deletion rule.
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.
- ✓
Auto-labeling policies
Why this is correct
Correct. Auto-labeling policies automatically apply sensitivity labels based on conditions.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Data Loss Prevention (DLP) policies
Why it's wrong here
Incorrect. DLP policies prevent sharing but do not manage retention.
- ✗
eDiscovery
Why it's wrong here
Incorrect. eDiscovery is for searching content, not retention or deletion.
- ✓
Retention labels
Why this is correct
Correct. Retention labels define how long to retain and when to delete.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Sensitivity labels
Why this is correct
Correct. Sensitivity labels can classify content containing credit card numbers.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse DLP policies with retention and auto-labeling, mistakenly thinking DLP can enforce retention or deletion, when in fact DLP only handles data loss prevention actions like blocking or alerting, not lifecycle management.
Detailed technical explanation
How to think about this question
Under the hood, auto-labeling policies use the Microsoft 365 built-in sensitive information types (e.g., Credit Card Number, defined by regex patterns and checksum validation) to scan content at rest in SharePoint, OneDrive, and Exchange. The retention label applied via auto-labeling triggers a retention policy that, when configured with a 'delete after 3 years' action, uses the Managed Folder Assistant to permanently remove the item from the mailbox or site after the retention period expires, ensuring compliance with data lifecycle requirements.
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 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
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.
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FAQ
Questions learners often ask
What does this MS-900 question test?
Describe Microsoft 365 apps and services — This question tests Describe Microsoft 365 apps and services — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Auto-labeling policies — Auto-labeling policies (A) are correct because they can automatically apply sensitivity labels to documents containing sensitive information types like credit card numbers, based on conditions defined in the policy. This enables the automatic classification of content, which is a prerequisite for applying retention labels that enforce the 3-year retention and deletion rule.
What should I do if I get this MS-900 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.
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Last reviewed: Jun 24, 2026
This MS-900 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-900 exam.
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