Thanks guys. I learnt.
My guess is
Tomcat keeps track of the on-going sessions, and upon Normal shutdown of Tomcat, it will save the status(Probably serialize the attributes in the sessions, save the session ID, save the time-out values, etc). So next time it starts up, it will read the status, and if the client sends a HTTP request with a cookie header or the jsessionid is contained in URL, Tomcat will verify the timeout, if not timed-out yet, the session will be in use again.
Two things,
1. If you kill the Tomcat process, say on Unix do a "kill -9", I guess Sessions can't get re-activated upon Tomcat restart.
2. This is a nice feature of Tomcat, but not required by Spec, and not guaranteed by web-containers. So, if the exam really asks about this(probably not), guess the best.
Kyle