Howdy -- let me see if I can explain it... it *IS* a confusing question.
The way the question is worded, the scenario is like this:
A has a Remote interface that Client R is using.
Client R has a remote reference to bean A.
B has a Remote interface that Client R is using.
Client R has a remote reference to bean B.
Bean B has a local interface that bean A is using.
Bean A is a local client of bean B.
So, A has a local reference to B.
Client R has a remote reference to A and B.
BUT... bean B does not have a reference to Client R.
So, to start with the simplest one...
"D" is true because B cannot invoke methods on R, because "B" does not have a reference to R. In fact, NOBODY has a reference to R.
"C" is false because A CAN invoke methods on B, since A is a client to B.
"B" is true because A has a local reference to B, and since R is a Remote client, A is not allowed to pass a local reference out through a Remote method return value (or any Remote call argument).
"A" is false because R CAN pass his reference for A over to B. The reason for this is that R has a REMOTE reference to A. Remote references can be passed around everywhere, without restriction. R can say, "Here you go B, here's a Remote reference to A." and that's not a problem. This would give B a Remote reference to A's Remote component interface (EJBObject stub) on which B could then call methods on A. It is always fine to send around Remote references to beans (meaning, references to the bean's Remote component interface).
The problem is in sending LOCAL references. A local reference to a bean (and when I say "to a bean" I really mean "to the bean's component interface") must NOT be passed out of the JVM, so you can't go passing it out via arguments or return values like that.
We never said that R is a bean. All we know is that R is a Remote client to A and B. For all we know, R is a
servlet or stand-alone
Java application. But it doesn't matter. Even if R really were a bean, it works the same way.
Bert wrote this question...

But I remember that it confused me the first time I saw it. You really have to think through all of the implications when you see questions like that. There ARE some on the exam like this...
cheers,
Kathy