Section: Security Operation Adimnistration
Explanation/Reference:
A trusted system is one that meets its intended security requirements. It involves sufficiency and effectiveness, not necessarily efficiency, in enforcing a security policy. Put succinctly, trusted systems have (1) policy, (2) mechanism, and (3) assurance.
Source: HARE, Chris, Security Architecture and Models, Area 6 CISSP Open Study Guide, January 2002.

To the untrusted host, all traffic seems to originate from the proxy server and addresses on the trusted network are not revealed.
"User base" is incorrect. The proxy hides the origin of the request from the untrusted host.
"Operating system design" is incorrect. The proxy hides the origin of the request from the untrusted host.
"Net BIOS' design" is incorrect. The proxy hides the origin of the request from the untrusted host.
References:
CBK, p. 467 AIO3, pp. 486 - 490

Something you know and a password fits within only one of the three ways
authentication could be done. A password is an example of something you know, thereby
something you know and a password does not constitute a two-factor authentication as
both are in the same category of factors.
A two-factor (strong) authentication relies on two different kinds of authentication factors
out of a list of three possible choice:
something you know (e.g. a PIN or password),
something you have (e.g. a smart card, token, magnetic card),
something you are is mostly Biometrics (e.g. a fingerprint) or something you do (e.g.
signature dynamics).
TIP FROM CLEMENT:
On the real exam you can expect to see synonyms and sometimes sub-categories under
the main categories. People are familiar with Pin, Passphrase, Password as subset of
Something you know.
However, when people see choices such as Something you do or Something you are they
immediately get confused and they do not think of them as subset of Biometrics where you
have Biometric implementation based on behavior and physilogical attributes. So
something you do falls under the Something you are category as a subset.
Something your do would be signing your name or typing text on your keyboard for
example.
Strong authentication is simply when you make use of two factors that are within two
different categories.
Reference(s) used for this question:
Shon Harris, CISSP All In One, Fifth Edition, pages 158-159

Preventive
/Administrative Pairing: These mechanisms include organizational policies and procedures, pre-employment background checks, strict hiring practices, employment agreements, friendly and unfriendly employee termination procedures, vacation scheduling, labeling of sensitive materials, increased supervision, security awareness training, behavior awareness, and sign-up procedures to obtain access to information systems and networks. Source: KRUTZ, Ronald L. & VINES, Russel D., The CISSP Prep Guide: Mastering the Ten Domains of Computer Security, 2001, John Wiley & Sons, Page 34.

Section: Network and Telecommunications
Explanation/Reference:
Before a LAN is connected to the Internet, you need to determine what the access controls mechanisms are to be used, this would include how you are going to authenticate individuals that may access your network externally through access control.
The following answers are incorrect:
plan for implementing workstation locking mechanisms. This is incorrect because locking the workstations have no impact on the LAN or Internet access.
plan for protecting the modem pool. This is incorrect because protecting the modem pool has no impact on the LAN or Internet access, it just protects the modem.
plan for providing the user with his account usage information. This is incorrect because the question asks what should be done first. While important your primary concern should be focused on security.