Yay, I got this question right! (I know, I know, 50-50 chance....)
I do have one follow-up question. One of our dev servers returned 1900-01-01 00:00:00.000 when I ran SELECT loginproperty('sa', 'badpasswordtime').
Does that datetime mean that there has not yet been a time on that server when sa was unable to connect because of a bad password? Just checking.
Thanks,
webrunner