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1. protection against fire hazard from a short-circuit. A short-circuit can be caused by a loose wire, faulty insulation, or faulty wiring. A short-circuit will cause the wires to heat up rapidly, presenting a fire hazard.

2. protection against circuit overloading. Too much current in a wire caused by overloading (plugging in too many high-power appliances, for example) can cause overheating, presenting a fire hazard. Most circuit breakers have a "slow-blow" mode that breaks the circuit if overload continues for too long.

3. on grounded appliances (which have the third prong on the plug), the ground is connected to all exposed conductive material on the appliance. In the event that a loose wire contacts the exposed metal, a short-circuit will occur, and the power will be cut. This protects against accidental electrocution.

Circuit breakers do not protect against fire hazards from inferior gauge of wire, glow-faults, or arc-faults. Most do not protect against electrocution hazards from ground-faults (although some do).

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Q: Why a circuit is protected by a circuit breaker?
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