I'd be more inclined to say "yes sir" since your answer could be taken as a smart ass remark by a cop who might be having a bad day.......
It is a fine line indeed, but in Georgia the officer is not legally permitted to just pop out that question out of the blue. He is not even legally allowed to ask if you have a permit for the weapon.
They do things differently in other states. You can see one case here:
MY point is that you don’t have to be an asshole when answering but you also don’t have to give up your rights willy-nilly. Again, this was told to me by a police chief here in my own state. There are other instances throughout the state where CLEOs have confirmed this.
When/if I am stopped, I will present my driver’s license along with the valid CWCL and then answer his questions but the CWCL should preclude him from getting nasty about it.
Just because he is a LEO doesn’t mean he is an asshole like the LEO in the reference I cited above. And just because he is a LEO, his gun scares me too. I’m glad we have this law in my state, frankly.