C and E. Little confusion at first about E because of the use of the word "Packet" which is a layer 3 term rather than using "Frame" for a layer 2 concept. However, we need to remember that packet is a general term that is also used to replace other terms like a "frame" of other layers. CISCO questions like this tend to use it as well. Also, a L3 packet encapsulates a L2 frame which in turn embed a frame.
@squagmire You are right.
The Layer 3 (L3) packet, such as an IP packet, is encapsulated within a Layer 2 (L2) frame, such as Ethernet. This means the L2 frame contains the L3 packet, and that's how data is transmitted across local networks or physical networks.
Even if no answer talks about “frames”, but only “packets” are mentioned, just focus on what a Layer 2 switch DOES, not ON WHAT a Layer 2 switch operates.
A. acts as a central point for association and authentication servers
I think a WLC does this: “association” means a wireless device which associates with a lightweight AP, and an “authentication server” can be a RADIUS server configured on a WLC to authenticate wireless users.
To me, wrong answer.
B. selects the best route between networks on a WAN
A router’s job.
Wrong answer.
C. moves packets within a VLAN
Yes, a Layer 2 switch does this.
Correct answer.
D. moves packets between different VLANs
Well, inter-VLANs routing implies a Layer 3 switch, not a Layer 2 one.
Wrong answer.
E. makes forwarding decisions based on the MAC address of a packet
Yes, the typical use of a Layer 2 switch.
Correct answer.
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