MS-900: Microsoft 365 Fundamentals Exam

360 Questions and Answers

$19.99

The MS-900: Microsoft 365 Fundamentals Practice Exam is the ideal preparation tool for individuals seeking to build a foundational understanding of Microsoft 365 cloud services. Designed to reflect the most recent Microsoft certification objectives, this practice test is perfect for business users, students, and aspiring IT professionals who want to validate their knowledge of Microsoft 365 capabilities and benefits.

With a wide range of realistic multiple-choice and scenario-based questions, this exam prep covers essential topics like cloud concepts, Microsoft 365 pricing and support, and key services including Teams, Exchange, SharePoint, and OneDrive. Each question is paired with a clear explanation to enhance learning and reinforce your understanding of core concepts.

Key Topics Covered:

 

  • Cloud computing concepts and Microsoft 365 services

  • Core Microsoft 365 components: Teams, Outlook, SharePoint, OneDrive

  • Microsoft 365 security, compliance, and trust features

  • Identity, access management, and Microsoft Entra ID (formerly Azure AD)

  • Microsoft 365 plans, licensing models, and billing

  • Productivity and collaboration tools within Microsoft 365

  • Support and service lifecycle in Microsoft 365

This practice exam is ideal for anyone pursuing the Microsoft Certified: Microsoft 365 Fundamentals credential and serves as a strong foundation before advancing to administrator or security certifications.

Sample Questions and Answers

Which Microsoft 365 compliance feature allows for legal hold on emails?

Exchange Online Archiving and Litigation Hold
B. Microsoft Teams
C. Power BI
D. Microsoft Planner

Answer: A. Exchange Online Archiving and Litigation Hold
Explanation: It preserves mailbox content for legal and regulatory requirements.

Which Microsoft 365 feature enables real-time presence and instant messaging?

Microsoft Teams
B. Outlook
C. SharePoint
D. Power Apps

Answer: A. Microsoft Teams
Explanation: Teams provides presence indicators and instant messaging.

What is the primary function of Microsoft Viva in Microsoft 365?

Managing data backups
B. Employee experience platform focusing on engagement, learning, and well-being
C. Cloud storage
D. Email management

Answer: B. Employee experience platform focusing on engagement, learning, and well-being
Explanation: Viva integrates with Teams and other services to improve employee experience.

How can Microsoft 365 admins manage user licenses?

Using the Microsoft 365 admin center
B. Through Microsoft Excel only
C. Using Power BI dashboards
D. They cannot manage licenses

Answer: A. Using the Microsoft 365 admin center
Explanation: Admins assign, remove, and manage licenses centrally.

What feature does Microsoft 365 provide for data encryption in transit?

TLS (Transport Layer Security)
B. FTP
C. HTTP
D. SMTP

Answer: A. TLS (Transport Layer Security)
Explanation: TLS encrypts data transmitted between clients and Microsoft 365 servers.

What is the maximum number of Teams that a user can be a member of?

50
B. 200
C. 500
D. 1000

Answer: C. 500
Explanation: Users can join up to 500 teams in Microsoft Teams.

What is Microsoft 365’s approach to software updates?

Manual updates only
B. Continuous delivery of feature and security updates through the cloud
C. Annual major updates only
D. No updates

Answer: B. Continuous delivery of feature and security updates through the cloud
Explanation: Microsoft 365 uses cloud-based servicing to keep software updated automatically.

What is the function of Microsoft Cloud App Security (MCAS)?

To provide data backup for cloud apps
B. To offer visibility, control, and threat protection for cloud applications
C. To manage email encryption
D. To create reports on user activity

Answer: B. To offer visibility, control, and threat protection for cloud applications
Explanation: MCAS is a Cloud Access Security Broker (CASB) that helps secure cloud services.

Which Microsoft 365 feature allows users to work together on documents in real time?

Co-authoring in Office apps
B. Microsoft To Do
C. Microsoft Planner
D. Power Automate

Answer: A. Co-authoring in Office apps
Explanation: Co-authoring lets multiple users edit documents simultaneously.

What does Multi-Factor Authentication (MFA) in Microsoft 365 improve?

User interface
B. Account security by requiring two or more verification methods
C. Email delivery speed
D. File sharing limits

Answer: B. Account security by requiring two or more verification methods
Explanation: MFA reduces the risk of unauthorized access.

What service in Microsoft 365 provides cloud-based telephony features?

Microsoft Teams Phone System
B. Skype for Business
C. Exchange Online
D. Yammer

Answer: A. Microsoft Teams Phone System
Explanation: It enables calling, voicemail, and other telephony features integrated with Teams.

Which Microsoft 365 service is designed for enterprise social networking?

Yammer
B. Microsoft Teams
C. SharePoint Online
D. OneDrive for Business

Answer: A. Yammer
Explanation: Yammer facilitates communication and knowledge sharing across organizations.

Which Microsoft 365 compliance capability allows managing data retention policies?

Microsoft Purview Data Lifecycle Management
B. Microsoft Teams
C. Microsoft Planner
D. Power Apps

Answer: A. Microsoft Purview Data Lifecycle Management
Explanation: It helps define retention and deletion policies for organizational data.

How does Microsoft 365 support hybrid work environments?

By providing on-premises software only
B. By offering cloud-based tools accessible anywhere with internet
C. By requiring VPN connections for all access
D. By disabling mobile device support

Answer: B. By offering cloud-based tools accessible anywhere with internet
Explanation: Microsoft 365 supports remote and hybrid work through cloud apps and services.

What is the Microsoft 365 admin center used for?

Managing user accounts, licenses, and service settings
B. Writing code
C. Editing documents
D. Creating surveys

Answer: A. Managing user accounts, licenses, and service settings
Explanation: It is the centralized portal for Microsoft 365 administration.

What feature of Microsoft 365 helps prevent phishing attacks?

Microsoft Defender for Office 365 Anti-Phishing Policies
B. Microsoft Planner
C. Microsoft Forms
D. Power BI

Answer: A. Microsoft Defender for Office 365 Anti-Phishing Policies
Explanation: It detects and blocks phishing attempts in email.

Which Microsoft 365 subscription includes desktop Office applications like Word and Excel?

Microsoft 365 Business Standard
B. Microsoft 365 Business Basic
C. Exchange Online
D. Microsoft Teams Free

Answer: A. Microsoft 365 Business Standard
Explanation: This subscription includes fully installed Office desktop apps.

What role does Azure Active Directory (Azure AD) play in Microsoft 365?

Identity and access management service
B. Email hosting service
C. Cloud storage
D. Video conferencing platform

Answer: A. Identity and access management service
Explanation: Azure AD manages users, groups, and access to cloud resources.

Which Microsoft 365 service helps organizations manage insider risk and compliance?

Microsoft Purview Insider Risk Management
B. Microsoft Teams
C. OneDrive for Business
D. Microsoft Forms

Answer: A. Microsoft Purview Insider Risk Management
Explanation: It helps identify and mitigate insider threats.

Which tool in Microsoft 365 can automate repetitive tasks and workflows?

Power Automate
B. Power BI
C. Microsoft Stream
D. Microsoft Planner

Answer: A. Power Automate
Explanation: It automates tasks across multiple apps and services.

What is the default retention period for deleted items in Microsoft 365 mailboxes?

14 days
B. 30 days
C. 90 days
D. 365 days

Answer: C. 90 days
Explanation: Deleted mailbox items are retained for 30 days in the Deleted Items folder and an additional 60 days in the Recoverable Items folder.

What is the purpose of Microsoft Endpoint Manager?

Device and application management for PCs and mobile devices
B. Data analytics
C. Creating surveys
D. Video conferencing

Answer: A. Device and application management for PCs and mobile devices
Explanation: It unifies management of devices through Intune and Configuration Manager.

What is the purpose of Microsoft 365 Compliance Center?

To help manage compliance and regulatory requirements
B. To schedule meetings
C. To edit documents collaboratively
D. To manage email subscriptions

Answer: A. To help manage compliance and regulatory requirements
Explanation: It centralizes compliance features and tools for organizations.

What is Microsoft Viva Connections?

A portal for employee communication and resources integrated with Teams
B. A cloud storage service
C. A Power BI dashboard
D. A video conferencing feature

Answer: A. A portal for employee communication and resources integrated with Teams
Explanation: Viva Connections helps keep employees engaged and informed.

Which Microsoft 365 service is primarily used for email and calendaring?

Exchange Online
B. Microsoft Teams
C. SharePoint Online
D. OneDrive

Answer: A. Exchange Online
Explanation: Exchange Online provides cloud-based email, calendar, and contacts.

What is the function of Microsoft 365 Business Voice?

Cloud-based phone system integrated with Microsoft Teams
B. Email marketing tool
C. File sharing service
D. Task management tool

Answer: A. Cloud-based phone system integrated with Microsoft Teams
Explanation: It provides telephony capabilities within Teams.

What does Microsoft 365’s ‘Zero Trust’ security model imply?

Trust all devices on the network
B. Never trust and always verify identity and access regardless of location
C. Trust internal users automatically
D. No security required for cloud services

Answer: B. Never trust and always verify identity and access regardless of location
Explanation: Zero Trust enforces strict identity verification and least privilege access.

Which Microsoft 365 application is designed for creating and sharing interactive data visualizations?

Power BI
B. Microsoft Teams
C. Microsoft Planner
D. Microsoft Stream

Answer: A. Power BI
Explanation: Power BI transforms data into interactive reports and dashboards.

What is the Microsoft 365 feature that enables advanced eDiscovery for legal investigations?

Microsoft Purview Advanced eDiscovery
B. Microsoft Teams
C. OneDrive for Business
D. Microsoft Forms

Answer: A. Microsoft Purview Advanced eDiscovery
Explanation: It helps organizations identify, collect, and analyze electronic data for investigations.

Which of the following is NOT a benefit of using Microsoft 365 cloud services?

Automatic software updates
B. Reduced IT maintenance
C. Fixed, unchanging software versions
D. Access from anywhere with internet

Answer: C. Fixed, unchanging software versions
Explanation: Microsoft 365 is continuously updated with new features.

What Microsoft 365 service allows you to create intranet sites for your organization?

SharePoint Online
B. Microsoft Teams
C. Microsoft Planner
D. OneDrive

Answer: A. SharePoint Online
Explanation: SharePoint is used to build intranet portals and team sites.

Which feature in Microsoft 365 helps ensure that only compliant devices can access company resources?

Conditional Access
B. Microsoft Forms
C. Power BI
D. Microsoft Teams

Answer: A. Conditional Access
Explanation: Conditional Access policies evaluate device compliance before granting access.

What is the maximum number of members allowed in a Microsoft 365 Group?

1000
B. 5000
C. 10,000
D. 50,000

Answer: C. 10,000
Explanation: Microsoft 365 Groups can contain up to 10,000 members.

Which Microsoft 365 feature enables automatic classification and labeling of sensitive data?

Microsoft Purview Information Protection
B. Microsoft Teams
C. Power Automate
D. Microsoft Planner

Answer: A. Microsoft Purview Information Protection
Explanation: It applies labels to classify and protect data automatically.

What is the main benefit of Microsoft 365 cloud-based identity management?

Simplified and centralized user access management
B. Increased hardware costs
C. Manual password resets only
D. Local device management

Answer: A. Simplified and centralized user access management
Explanation: Azure AD centralizes identity and access control for cloud services.

Which Microsoft 365 service is used for video sharing and management within organizations?

Microsoft Stream
B. Microsoft Teams
C. Power BI
D. Microsoft Forms

Answer: A. Microsoft Stream
Explanation: Stream is a video platform for uploading, sharing, and managing videos.

What is the primary Microsoft 365 service used to schedule meetings and manage calendars?

Outlook
B. Microsoft Teams
C. SharePoint
D. Microsoft Planner

Answer: A. Outlook
Explanation: Outlook provides email and calendar scheduling features.

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