What Are Two Functions of MPLS Layer 3 VPNs? (Choose

question 7

Multiple Choice

What are two functions of MPLS Layer 3 VPNs? (Choose two.)

• A) It is used for transparent point-to-multipoint connectivity between Ethernet links/sites.
• B) A packet with node segment ID is forwarded along with shortest path to destination.
• C) Customer traffic is encapsulated in a VPN label when it is forwarded in MPLS network.
• D) BGP is used for signaling customer VPNv4 routes between PE nodes.
• E) LDP and BGP can be used for Pseudowire signaling.

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Definitions:

Adverse Selection

A situation in economics and insurance where the party on one side of the deal has more information than the party on the other side, leading to an imbalance and potentially unfair outcomes.

Moral Hazard

The risk that one party to an agreement will engage in behavior that is undesirable from the other party's perspective because it does not bear the full consequences of its actions.

Adverse Selection

A situation in which one party in a transaction has more information than the other, leading to imbalanced and inefficient market outcomes, commonly seen in insurance markets.

Information Gathering

The process of collecting data or information for specific purposes, often used in decision-making.