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Describe security, compliance, privacy, and trust in Microsoft 365 →mediumMultiple ChoiceObjective-mapped

How Auto-Labeling Applies Sensitivity Labels When Credit Card Numbers Are Detected in SharePoint

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.

Exhibit

Refer to the exhibit.
```json
{
  "compliance": {
    "labelPolicies": [
      {
        "labelId": "12345",
        "settings": {
          "marking": {
            "encryption": "enabled",
            "protection": {
              "expirationDate": "2026-12-31",
              "allowOfflineAccess": false
            }
          },
          "autoLabeling": {
            "sensitiveInfoTypes": ["Credit Card Number"]
          }
        }
      }
    ]
  }
}
```

Refer to the exhibit. An administrator configured a sensitivity label with auto-labeling for credit card numbers. What happens when a user creates a document containing a credit card number and saves it to SharePoint Online?

Exhibit

Refer to the exhibit.
```json
{
  "compliance": {
    "labelPolicies": [
      {
        "labelId": "12345",
        "settings": {
          "marking": {
            "encryption": "enabled",
            "protection": {
              "expirationDate": "2026-12-31",
              "allowOfflineAccess": false
            }
          },
          "autoLabeling": {
            "sensitiveInfoTypes": ["Credit Card Number"]
          }
        }
      }
    ]
  }
}
```

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

✓

The label is automatically applied, and the document is encrypted.

The auto-labeling rule automatically applies the sensitivity label when a credit card number is detected. The label is configured to enforce encryption via the 'Encrypt document' action, so the document is encrypted upon label application. Therefore, option B is correct.

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.

  • ✗

    The label is applied only when the user manually selects it.

    Why it's wrong here

    Auto-labeling is enabled, so it applies automatically.

  • ✓

    The label is automatically applied, and the document is encrypted.

    Why this is correct

    Auto-labeling detects credit card numbers and applies the label with encryption.

    Related concept

    Read the scenario before looking for a memorised answer.

  • ✗

    The document is blocked from being saved.

    Why it's wrong here

    Auto-labeling does not block saving; it applies the label.

  • ✗

    The label is applied, but encryption is not enforced because the user can override.

    Why it's wrong here

    The policy shows encryption enabled; auto-labeling enforces it.

Common exam traps

Common exam trap: answer the scenario, not the keyword

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.

Trap categories for this question

  • Command / output trap

    The policy shows encryption enabled; auto-labeling enforces it.

Detailed technical explanation

How to think about this question

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.

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.
  • Use explanations to understand the rule behind the answer.

TExam Day Tips

  • Underline the problem statement mentally.
  • 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 MS-900 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

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: The label is automatically applied, and the document is encrypted. — The auto-labeling rule automatically applies the sensitivity label when a credit card number is detected. The label is configured to enforce encryption via the 'Encrypt document' action, so the document is encrypted upon label application. Therefore, option B is correct.

What should I do if I get this MS-900 question wrong?

Identify which MS-900 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.

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

About these practice questions

Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →

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Same concept, more angles

1 more ways this is tested on MS-900

These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.

Variation 1. A compliance administrator needs to automatically protect sensitive data by applying a 'Confidential' label that encrypts documents and restricts access to a specific user group. The label must be applied when a document containing a credit card number is saved in SharePoint. Which Microsoft Purview feature should be configured?

medium
  • A.Retention labels
  • ✓ B.Sensitivity labels with auto-labeling
  • C.Data Loss Prevention (DLP) policies
  • D.Data classification service

Why B: Sensitivity labels with auto-labeling are the correct choice because they allow you to automatically apply a 'Confidential' label that encrypts documents and restricts access based on sensitive content (e.g., credit card numbers) when documents are saved in SharePoint. This feature uses conditions like sensitive information types to trigger label application, ensuring data protection at rest and in use.

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Last reviewed: Jun 21, 2026

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