Question

Magnetic effect of current is used as explanation ​

Answer 1

When electric current passes through current carrying conductor or coil then a magnetic field is produced around it. The working of appliances like electric bell is based on this principle. As opposite to this if a continuous change in magnetic field is produced then electric current can be produced.

Answer 2

If we insert a piece of iron in a coil carrying current, then iron gets strongly magnetised. This principle is used to make strong electromagnets. The iron nail in the experiment behaves like a magnet only as long as the current is flowing in the circuit.