A central authority determines what subjects can have access to certain
objects based on the organizational security policy.
The key focal point of this question is the 'central authority' that determines access rights.
Cecilia one of the quiz user has sent me feedback informing me that NIST defines MAC as:
"MAC Policy means that Access Control Policy Decisions are made by a CENTRAL
AUTHORITY. Which seems to indicate there could be two good answers to this question.
However if you read the NISTR document mentioned in the references below, it is also
mentioned that: MAC is the most mentioned NDAC policy. So MAC is a form of NDAC
policy.
Within the same document it is also mentioned: "In general, all access control policies
other than DAC are grouped in the category of non- discretionary access control (NDAC).
As the name implies, policies in this category have rules that are not established at the
discretion of the user. Non-discretionary policies establish controls that cannot be changed
by users, but only through administrative action."
Under NDAC you have two choices:
Rule Based Access control and Role Base Access Control
MAC is implemented using RULES which makes it fall under RBAC which is a form of
NDAC. It is a subset of NDAC.
This question is representative of what you can expect on the real exam where you have
more than once choice that seems to be right. However, you have to look closely if one of
the choices would be higher level or if one of the choice falls under one of the other choice.
In this case NDAC is a better choice because MAC is falling under NDAC through the use
of Rule Based Access Control.
The following are incorrect answers:
MANDATORY ACCESS CONTROL
In Mandatory Access Control the labels of the object and the clearance of the subject
determines access rights, not a central authority. Although a central authority (Better known
as the Data Owner) assigns the label to the object, the system does the determination of
access rights automatically by comparing the Object label with the Subject clearance. The
subject clearance MUST dominate (be equal or higher) than the object being accessed.
The need for a MAC mechanism arises when the security policy of a system dictates that:
1.Protection decisions must not be decided by the object owner.
2.The system must enforce the protection decisions (i.e., the system enforces the security policy over the wishes or intentions of the object owner).
Usually a labeling mechanism and a set of interfaces are used to determine access based on the MAC policy; for example, a user who is running a process at the Secret classification should not be allowed to read a file with a label of Top Secret. This is known as the "simple security rule," or "no read up."
Conversely, a user who is running a process with a label of Secret should not be allowed to write to a file with a label of Confidential. This rule is called the "*-property" (pronounced "star property") or "no write down." The *-property is required to maintain system security in an automated environment.
DISCRETIONARY ACCESS CONTROL In Discretionary Access Control the rights are determined by many different entities, each of the persons who have created files and they are the owner of that file, not one central authority.
DAC leaves a certain amount of access control to the discretion of the object's owner or anyone else who is authorized to control the object's access. For example, it is generally used to limit a user's access to a file; it is the owner of the file who controls other users' accesses to the file. Only those users specified by the owner may have some combination of read, write, execute, and other permissions to the file.
DAC policy tends to be very flexible and is widely used in the commercial and government sectors. However, DAC is known to be inherently weak for two reasons:
First, granting read access is transitive; for example, when Ann grants Bob read access to a file, nothing stops Bob from copying the contents of Ann's file to an object that Bob controls. Bob may now grant any other user access to the copy of Ann's file without Ann's knowledge.
Second, DAC policy is vulnerable to Trojan horse attacks. Because programs inherit the identity of the invoking user, Bob may, for example, write a program for Ann that, on the surface, performs some useful function, while at the same time destroys the contents of Ann's files. When investigating the problem, the audit files would indicate that Ann destroyed her own files. Thus, formally, the drawbacks of DAC are as follows:
Discretionary Access Control (DAC) Information can be copied from one object to another;
therefore, there is no real assurance on the flow of information in a system.
No restrictions apply to the usage of information when the user has received it.
The privileges for accessing objects are decided by the owner of the object, rather than
through a system-wide policy that reflects the organization's security requirements.
ACLs and owner/group/other access control mechanisms are by far the most common
mechanism for implementing DAC policies. Other mechanisms, even though not designed
with DAC in mind, may have the capabilities to implement a DAC policy.
RULE BASED ACCESS CONTROL
In Rule-based Access Control a central authority could in fact determine what subjects can
have access when assigning the rules for access. However, the rules actually determine
the access and so this is not the most correct answer.
RuBAC (as opposed to RBAC, role-based access control) allow users to access systems
and information based on pre determined and configured rules. It is important to note that
there is no commonly understood definition or formally defined standard for rule-based
access control as there is for DAC, MAC, and RBAC. "Rule-based access" is a generic
term applied to systems that allow some form of organization-defined rules, and therefore
rule-based access control encompasses a broad range of systems. RuBAC may in fact be
combined with other models, particularly RBAC or DAC. A RuBAC system intercepts every
access request and compares the rules with the rights of the user to make an access
decision. Most of the rule-based access control relies on a security label system, which
dynamically composes a set of rules defined by a security policy. Security labels are
attached to all objects, including files, directories, and devices. Sometime roles to subjects
(based on their attributes) are assigned as well. RuBAC meets the business needs as well
as the technical needs of controlling service access. It allows business rules to be applied
to access control-for example, customers who have overdue balances may be denied
service access. As a mechanism for MAC, rules of RuBAC cannot be changed by users.
The rules can be established by any attributes of a system related to the users such as
domain, host, protocol, network, or IP addresses. For example, suppose that a user wants
to access an object in another network on the other side of a router. The router employs
RuBAC with the rule composed by the network addresses, domain, and protocol to decide
whether or not the user can be granted access. If employees change their roles within the
organization, their existing authentication credentials remain in effect and do not need to be
re configured. Using rules in conjunction with roles adds greater flexibility because rules
can be applied to people as well as to devices. Rule-based access control can be
combined with role-based access control, such that the role of a user is one of the
attributes in rule setting. Some provisions of access control systems have rule- based policy engines in addition to a role-based policy engine and certain implemented dynamic policies [Des03]. For example, suppose that two of the primary types of software users are product engineers and quality engineers. Both groups usually have access to the same data, but they have different roles to perform in relation to the data and the application's function. In addition, individuals within each group have different job responsibilities that may be identified using several types of attributes such as developing programs and testing areas. Thus, the access decisions can be made in real time by a scripted policy that regulates the access between the groups of product engineers and quality engineers, and each individual within these groups. Rules can either replace or complement role-based access control. However, the creation of rules and security policies is also a complex process, so each organization will need to strike the appropriate balance.
References used for this question: http://csrc.nist.gov/publications/nistir/7316/NISTIR-7316.pdf and AIO v3 p162-167 and OIG (2007) p.186-191 also KRUTZ, Ronald L. & VINES, Russel D., The CISSP Prep Guide: Mastering the Ten Domains of Computer Security, 2001, John Wiley & Sons, Page 33.

It would be correct to select the first answer if the world "security" was not in
the question.
Source: TIPTON, Hal, (ISC)2, Introduction to the CISSP Exam presentation.

Explanation/Reference:
Synchronous dynamic password tokens generate a new unique password value at fixed time intervals, so the server and token need to be synchronized for the password to be accepted.
Source: KRUTZ, Ronald L. & VINES, Russel D., The CISSP Prep Guide: Mastering the Ten Domains of Computer Security, John Wiley & Sons, 2001, Chapter 2: Access control systems (page 37).
Also check out: HARRIS, Shon, All-In-One CISSP Certification Exam Guide, McGraw-Hill/Osborne, 2002, chapter 4: Access Control (page 136).

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.