- A
Auto-labeling policy for sensitivity labels
Auto-labeling policies can automatically apply labels based on sensitive information types (e.g., passport numbers) without user intervention.
- B
Manual labeling using the Office apps
Why wrong: Manual labeling requires users to select a label, which does not meet the requirement for automatic labeling.
- C
Retention labels with DLP policy
Why wrong: Retention labels manage retention but do not automatically classify or encrypt content based on sensitive information.
- D
Trainable classifiers
Why wrong: Trainable classifiers identify content for classification, but the actual automatic labeling is done via auto-labeling policies, not classifiers alone.
MS-900 Practice Question: Describe security, compliance, privacy, and trust in Microsoft 365
This MS-900 practice question tests your understanding of describe security, compliance, privacy, and trust in microsoft 365. 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.
A compliance officer needs to ensure that any document containing passport numbers automatically gets a 'Highly Confidential' label and is encrypted when saved in SharePoint. The labeling should occur without any user interaction. Which Microsoft Purview feature should they configure?
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 policy for sensitivity labels
Option A is correct because auto-labeling policies in Microsoft Purview can automatically apply a sensitivity label (e.g., 'Highly Confidential') to documents containing passport numbers when saved in SharePoint, without any user interaction. This is achieved by configuring a policy that uses sensitive info types (e.g., 'Passport Number') to detect the data and then automatically apply the label and encryption. The labeling occurs at rest, triggered by document upload or modification, meeting the compliance officer's requirement for zero user intervention.
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 policy for sensitivity labels
Why this is correct
Auto-labeling policies can automatically apply labels based on sensitive information types (e.g., passport numbers) without user intervention.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Manual labeling using the Office apps
Why it's wrong here
Manual labeling requires users to select a label, which does not meet the requirement for automatic labeling.
- ✗
Retention labels with DLP policy
Why it's wrong here
Retention labels manage retention but do not automatically classify or encrypt content based on sensitive information.
- ✗
Trainable classifiers
Why it's wrong here
Trainable classifiers identify content for classification, but the actual automatic labeling is done via auto-labeling policies, not classifiers alone.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse retention labels (which manage lifecycle) with sensitivity labels (which enforce protection like encryption), leading them to choose Option C, or they mistakenly think trainable classifiers (Option D) can directly apply labels without an auto-labeling policy.
Detailed technical explanation
How to think about this question
Auto-labeling policies in Microsoft Purview use sensitive info types (e.g., predefined or custom regex patterns for passport numbers) and can be configured to apply a sensitivity label that includes encryption via Azure Rights Management (Azure RMS). The policy evaluates content at rest in SharePoint, OneDrive, or Exchange, and can be set to 'simulation' mode first to test detection accuracy before enforcing the label. A subtle behavior is that auto-labeling for SharePoint applies to new or modified documents, not retroactively to all existing files unless a separate 'auto-labeling for files at rest' policy is configured.
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.
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FAQ
Questions learners often ask
What does this MS-900 question test?
Describe security, compliance, privacy, and trust in Microsoft 365 — This question tests Describe security, compliance, privacy, and trust in Microsoft 365 — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Auto-labeling policy for sensitivity labels — Option A is correct because auto-labeling policies in Microsoft Purview can automatically apply a sensitivity label (e.g., 'Highly Confidential') to documents containing passport numbers when saved in SharePoint, without any user interaction. This is achieved by configuring a policy that uses sensitive info types (e.g., 'Passport Number') to detect the data and then automatically apply the label and encryption. The labeling occurs at rest, triggered by document upload or modification, meeting the compliance officer's requirement for zero user intervention.
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.
About these practice questions
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Last reviewed: Jun 11, 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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