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CCNP Practice Question: Which two statements about MPLS VPN (Layer 3 VPN)…

Which two statements about MPLS VPN (Layer 3 VPN) are true? (Choose two.)

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

PE routers maintain separate VRF tables for each VPN customer.

In MPLS Layer 3 VPNs, the PE router maintains separate VRF tables per customer and uses MP-BGP to exchange VPNv4 routes (including the route distinguisher and VPN label). The P router does not need to know customer routes; it only swaps labels. The CE router does not participate in MPLS; it runs standard IP routing with the PE.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • PE routers maintain separate VRF tables for each VPN customer.

    Why this is correct

    Correct because VRF (Virtual Routing and Forwarding) instances isolate customer routes on the PE.

  • P routers must maintain a full routing table for each VPN customer.

    Why it's wrong here

    Incorrect because P routers only need the IGP and LDP information; they do not store customer VPN routes.

  • MP-BGP is used to exchange VPNv4 routes between PE routers.

    Why this is correct

    Correct because MP-BGP carries VPNv4 routes with route distinguishers and labels.

  • CE routers run MPLS and participate in label distribution with the PE.

    Why it's wrong here

    Incorrect because CE routers are standard IP routers and do not run MPLS.

  • The VPN label is used by P routers to forward traffic across the MPLS core.

    Why it's wrong here

    Incorrect because the VPN label is used by the egress PE to identify the correct VRF; P routers only use the transport label.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This 350-401 practice question is part of Courseiva's free Cisco 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 350-401 exam.