'Finally block will not be executed' is correct, in both possible paths through the code. If choice is true, the code enters an infinite while(true) loop with no break, so control never reaches the end of the try block and the finally clause is never reached at all — the thread simply loops forever. If choice is false, System.exit(1) is called, which immediately terminates the JVM; unlike a normal return or exception, System.exit() does not run pending finally blocks during shutdown. So regardless of which branch is taken, codetocleanup() in finally never executes. (Note the snippet as given has minor typos — lowercase 'system.exit' and a colon instead of a semicolon, and the while loop appears to be missing a body statement — but the underlying behavior being tested, infinite loop vs. System.exit both bypassing finally, is the intended concept.)