Personally, I love this type of question. I relates to some of the style of code I see day-to-day, sometimes with unclear, distracting, or obfuscating details.
I always read the code and try to figure out what it's going to do, answer the question, and then run the code afterwards.
If I get it wrong, or I want more detail, I read all of your comments.
In this case I got it wrong, but I learned something... or was at least reminded. And that's the point!
Thanks for the puzzle!
MCITP - Database Administrator (SQL 2008)
MCSE: Data Platform (SQL 2012)