This 350-501 practice question tests your understanding of architecture. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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.
Which TWO of the following are characteristics of MPLS L3VPN architecture? (Choose two.)
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Each customer has a separate VRF on the PE router
Option B is correct because in MPLS L3VPN, each customer is assigned a separate Virtual Routing and Forwarding (VRF) instance on the Provider Edge (PE) router. This VRF maintains a unique routing table and forwarding table per customer, ensuring complete isolation between different VPN customers on the same PE.
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.
✗
All traffic is forwarded using MPLS label switching only
Why it's wrong here
Label switching is used but not exclusively; IP forwarding can also be used.
✓
Each customer has a separate VRF on the PE router
Why this is correct
VRF is essential for L3VPN isolation.
Related concept
Read the scenario before looking for a memorised answer.
✗
LDP is required for label distribution in the core
Why it's wrong here
LDP is commonly used but not required; other methods exist.
✗
The P routers maintain a full routing table for each VPN
Why it's wrong here
P routers only have IGP and LDP; they do not have per-VPN tables.
✓
Customer IP prefixes are exchanged using MP-BGP VPNv4 updates
Why this is correct
MP-BGP carries VPNv4 routes with route distinguishers.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Cisco often tests the misconception that LDP is mandatory for MPLS L3VPN, but in reality, any label distribution protocol (LDP, RSVP-TE, or SR-MPLS) can be used in the core.
Detailed technical explanation
How to think about this question
In MPLS L3VPN, the PE router uses MP-BGP to exchange VPNv4 routes (which include the route distinguisher and route target) with other PEs, allowing each PE to populate the correct VRF. The P routers simply swap the outer LDP label (or SR-MPLS label) without inspecting the inner VPN label, which is only processed by the egress PE. A real-world scenario where this matters is when a service provider uses Segment Routing in the core instead of LDP, demonstrating that LDP is not mandatory.
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.
TExam Day Tips
→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 practitioner preparing for the 350-501 exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Architecture — This question tests Architecture — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Each customer has a separate VRF on the PE router — Option B is correct because in MPLS L3VPN, each customer is assigned a separate Virtual Routing and Forwarding (VRF) instance on the Provider Edge (PE) router. This VRF maintains a unique routing table and forwarding table per customer, ensuring complete isolation between different VPN customers on the same PE.
What should I do if I get this 350-501 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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