MSCA 70-291 Windows Server 2003 Exam Prep

Answer - C - MS-CHAP v2 supports encryption of connection data.

Key Takeaway: MS-CHAP v2 provides two-way authentication, also known as mutual authentication. With mutual authentication, the remote access client receives verification that the remote access server that it is dialing in to has access to the user's password. The cryptographic key is always based on the user's password and an arbitrary challenge string. Each time the user connects with the same password, a different cryptographic key is used.