Implementing Cisco Enterprise Advanced Routing and Services (ENARSI) — Question 74

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

Answer options

• 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.

Correct answer: C, D

Explanation

Option C is correct because MPLS Layer 3 VPNs encapsulate customer traffic in a VPN label for forwarding through the MPLS network. Option D is also correct as BGP is specifically used for signaling VPNv4 routes between Provider Edge (PE) routers. Options A and B do not accurately describe functions of MPLS Layer 3 VPNs, and option E, while related to signaling, does not pertain directly to the core functions of Layer 3 VPNs.