How does using the service password-encryption command on a router provide additional security?

How does using the service password-encryption command on a router provide additional security?
A. by encrypting all passwords passing through the router
B. by encrypting passwords in the plain text configuration file
C. by requiring entry of encrypted passwords for access to the device
D. by configuring an MD5 encrypted key to be used by routing protocols to validate routing exchanges
E. by automatically suggesting encrypted passwords for use in configuring the router

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