What is the purpose of using multi-wire branch circuits?

The correct understanding of the purpose of multi-wire branch circuits centers around the concept of supplying multiple voltages from a single circuit. Multi-wire branch circuits can use two hot conductors from different phases of a power supply, allowing them to deliver different voltage levels depending on the configuration.

This approach is particularly beneficial in residential and commercial settings where varying voltage requirements are common for different types of equipment. By utilizing multi-wire branch circuits, electricians can efficiently supply both 120V and 240V outlets from the same circuit, reducing the need for multiple separated circuits for different voltage levels.

This configuration not only conserves conductor materials—since fewer wires are needed overall—but it also optimizes panel space and simplifies the electrical installation. Hence, it makes perfect sense that the correct option highlights this critical aspect of multi-wire branch circuits in terms of voltage supply capabilities.