mediumMultiple SelectObjective-mapped
350-401 Practice Question: Which two statements about MPLS Layer 3 VPNs are…
Which two statements about MPLS Layer 3 VPNs 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 use MP-BGP to exchange VPNv4 routes that include the route distinguisher and the VPN label.
MPLS Layer 3 VPNs use MP-BGP to exchange VPNv4 routes between PE routers, and each VRF maintains a separate routing table per customer. The P routers do not need to know customer routes, and the CE router does not run MPLS. The label stack includes both an IGP label and a VPN label.
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 use MP-BGP to exchange VPNv4 routes that include the route distinguisher and the VPN label.
Why this is correct
Correct because MP-BGP carries VPNv4 routes (with route distinguisher) and the VPN label in the NLRI, enabling MPLS Layer 3 VPN operation.
- ✗
P routers in the MPLS core must maintain a full routing table for each customer VRF.
Why it's wrong here
Incorrect because P routers only need IGP routes to forward MPLS packets; they do not participate in VPN routing.
- ✗
CE routers must run MPLS and participate in the label distribution with the PE router.
Why it's wrong here
Incorrect because CE routers are standard IP routers; they do not run MPLS and exchange only IP routes with the PE.
- ✓
Each VRF on a PE router maintains a separate routing table and forwarding table per customer.
Why this is correct
Correct because a VRF creates an isolated routing and forwarding instance for each customer on the PE.
- ✗
The MPLS label stack in a Layer 3 VPN always contains exactly one label.
Why it's wrong here
Incorrect because the label stack typically has two labels: an IGP label (for transport) and a VPN label (for the egress PE).
Go deeper
Related to this question
Learn chapter
Network Automation and Programmability
Key term
Virtual Routing and Forwarding
Virtual Routing and Forwarding (VRF) is a technology that allows a single physical router to operate like multiple independent routers by keeping separate routing tables and forwarding decisions for each instance.
About these practice questions
This 350-401 question is part of Courseiva's 1,175-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. Learn why practice questions differ from exam dumps →
JA
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.