Question 671 of 985

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

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.

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?

Question 1mediummultiple choice

Full question →

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"]
          }
        }
      }
    ]
  }
}
```

A
The label is applied only when the user manually selects it.
Why wrong: Auto-labeling is enabled, so it applies automatically.
B
The label is automatically applied, and the document is encrypted.
Auto-labeling detects credit card numbers and applies the label with encryption.
C
The document is blocked from being saved.
Why wrong: Auto-labeling does not block saving; it applies the label.
D
The label is applied, but encryption is not enforced because the user can override.
Why wrong: The policy shows encryption enabled; auto-labeling enforces it.

Full breakdown with real-world context →

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 will automatically apply the label, which then encrypts the document and sets an expiration date. Option C 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 will automatically apply the label, which then encrypts the document and sets an expiration date. Option C is correct.

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

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 21, 2026

Question Discussion

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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.

MS-900 Practice Question: Describe security, compliance, privacy, and trust in Microsoft 365

Exhibit

Exhibit

Why each option matters

Option-by-option breakdown

Common exam trap: answer the scenario, not the keyword

How to think about this question

KKey Concepts to Remember

TExam Day Tips

How this comes up in practice

Concepts from this question explained

Got this wrong? Here's your next step.

Related MS-900 practice-question pages

Describe Microsoft 365 apps and services practice questions

Describe Microsoft 365 pricing, licensing, and support practice questions

Describe cloud concepts practice questions

Describe security, compliance, privacy, and trust in Microsoft 365 practice questions

Describe Microsoft 365 pricing and support practice questions

MS-900 fundamentals practice questions

MS-900 scenario practice questions

MS-900 troubleshooting practice questions

Start a free MS-900 practice session

Questions learners often ask

What does this MS-900 question test?

What is the correct answer to this question?

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

What is the key concept behind this question?

Question Discussion