- A
Microsoft provides default encryption for data at rest and in transit.
Microsoft 365 encrypts all data at rest using disk and file encryption, and all data in transit using industry-standard protocols like TLS.
- B
Customers must enable encryption at rest manually for each workload.
Why wrong: Encryption at rest is automatically applied to all Microsoft 365 data; customers do not need to enable it.
- C
Encryption only applies to Exchange Online, not SharePoint or OneDrive.
Why wrong: Encryption at rest and in transit applies to all Microsoft 365 services including Exchange, SharePoint, OneDrive, and Teams.
- D
Encryption is optional and can be turned off if a customer chooses.
Why wrong: Microsoft does not allow disabling encryption for data in transit or at rest; it is a fundamental security measure.
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 healthcare organization stores patient records in SharePoint Online. They need to ensure that the data is encrypted at rest and in transit. Which statement is true regarding Microsoft 365 encryption?
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
Microsoft provides default encryption for data at rest and in transit.
Microsoft 365 provides default encryption for data at rest and in transit across all workloads, including SharePoint Online, Exchange Online, and OneDrive for Business. For data at rest, Microsoft uses BitLocker Drive Encryption and service-side encryption with per-file keys, while data in transit is secured using TLS 1.2+ and IPSec. This means the healthcare organization's patient records in SharePoint Online are automatically encrypted without any manual configuration.
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.
- ✓
Microsoft provides default encryption for data at rest and in transit.
- ✗
Customers must enable encryption at rest manually for each workload.
Why it's wrong here
Encryption at rest is automatically applied to all Microsoft 365 data; customers do not need to enable it.
- ✗
Encryption only applies to Exchange Online, not SharePoint or OneDrive.
Why it's wrong here
Encryption at rest and in transit applies to all Microsoft 365 services including Exchange, SharePoint, OneDrive, and Teams.
- ✗
Encryption is optional and can be turned off if a customer chooses.
Why it's wrong here
Microsoft does not allow disabling encryption for data in transit or at rest; it is a fundamental security measure.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume encryption must be manually configured or is optional, but Microsoft 365 enforces encryption by default across all workloads, and customers cannot disable it.
Detailed technical explanation
How to think about this question
Under the hood, Microsoft 365 uses BitLocker Drive Encryption at the disk level for data at rest, combined with service-side encryption that generates a unique encryption key per file stored in SharePoint Online. For data in transit, Microsoft enforces TLS 1.2 or higher for all client-to-service and inter-service communications, and uses IPSec for intra-datacenter traffic. In a real-world scenario, even if a healthcare organization's compliance team attempts to disable encryption for performance testing, Microsoft's architecture prevents this, ensuring patient records remain protected under HIPAA and other regulations.
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 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: Microsoft provides default encryption for data at rest and in transit. — Microsoft 365 provides default encryption for data at rest and in transit across all workloads, including SharePoint Online, Exchange Online, and OneDrive for Business. For data at rest, Microsoft uses BitLocker Drive Encryption and service-side encryption with per-file keys, while data in transit is secured using TLS 1.2+ and IPSec. This means the healthcare organization's patient records in SharePoint Online are automatically encrypted without any manual configuration.
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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