And as with all such questions I'm judging your comfort with the concepts behind the skills - in this case set theory, conditional logic, data modeling, etc.
So it's more how you say it, not what you say it. And yes it's mostly negative signal - most interviews are just to weed out completely hopeless candidates.
I'm not an SQL expert, but it's very important to understand whether something is a known unknown or unknown unknown to a candidate. So, I imagine, if the candidate would say something along the lines of "oh, this looks like something for a window function - I don't know the syntax and the nitpicks, but I could google it", it'd be completely OK. However, if he wasn't even aware that such a tool existed, it means that he would never go and learn it in a week without outside guidance, and would choose a less-fitting tool to complete a task.
This is only useful if you tell candidates to study a book for a week first.
Otherwise you are filtering for narrowminded memorizers, not smart people who can learn and solve problems