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In \(1831\), English physicist Michael Faraday first studied this; Faraday made a significant breakthrough by discovering how a moving magnet can be used to generate electric currents.
 
To observe this effect, let us perform the following activity.
  • Consider a coil of wire AB having a large number of turns.
  • Connect the ends of the coil (AB) to a galvanometer, as shown in the below figure.
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Moving magnet in a fixed conductor
  • Take a strong bar magnet and move its north pole towards the end B of the coil.
Do you find any change in the galvanometer needle?
 
There is a  in the needle of the galvanometer, .
 
This deflection shows the presence of a current in the coil AB. The deflection  the moment the motion of the magnet stops.
  • Now withdraw the north pole of the magnet away from the coil.
The galvanometer is deflected toward the , showing that the current is set up  to the earlier deflection.
  • Locate the magnet stationary at a point near the coil, maintaining its north pole towards the end B of the coil.
We can observe that the galvanometer needle deflects  when the coil is moved towards the magnet's north pole. Similarly, the needle moves  when the coil is moved away.
  • When the coil is kept stationary with respect to the magnet, the deflection of the galvanometer .
What do you conclude from this activity?
 
You can also check that if you had moved the magnet's south pole towards the end B of the coil, the deflections in the galvanometer would just be  to the previous case. When the coil and the magnet are both stationary, there is  in the galvanometer.
 
It is, thus, clear from this activity that  produces an induced potential difference, which sets up an induced electric current in the circuit.