Difine magnetic effects of a steady current
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The whole concept is based on a Physical Fact-A moving charge or Current flow creates Magnetic Field in Neighbour Region. Thus a Current Loop actually produces Magnetic Flux for which that Current Loop can be replaced by an equivalent Magnetic Dipole.
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The magnetic effect of electric current is known as electromagnetic effect. It is observed that when a compass is brought near a current carrying conductor the needle of compass gets deflected because of flow of electricity. This shows that electric current produces a magnetic effect.
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