Which function is performed by a Layer 3 switch?

A Layer 3 switch combines the functions of a switch and a router. Its primary Layer 3 function is to route traffic between different IP subnets, which often correspond to different VLANs. This is more efficient than sending traffic to a separate router for inter-VLAN routing. Transmitting broadcast traffic when operating only in Layer 3 mode is incorrect because Layer 3 devices (routers and Layer 3 switches) typically stop broadcast traffic from crossing subnet boundaries, rather than transmitting it. Moving frames between endpoints limited to IP addresses is incorrect; Layer 3 operates with IP packets, not frames, and it routes between IP addresses, not just "moves frames." Forwarding Ethernet frames between VLANs using only MAC addresses is incorrect; this describes a Layer 2 switch, and inter-VLAN communication requires Layer 3 routing.