There are 5 types of fire extinguishers:
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Water - Absorbs the heat & cools the burning material.
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Dry Chemical - Smothers the fuel (preventing vapors from igniting) and interrupts the chemical chain reaction.
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CO2 - Removes the oxygen from the fire.
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Halotron - Interrupts the chemical chain reaction.
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Wet Chemical - Smothers and seals the fuel (preventing vapors from igniting) and removes the heat by cooling.