Go back to 640-816 - ICND2 - Interconnecting Cisco Networking Devices Part 2

Question :-

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

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