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Question

Statement I: When the current is switched on through a wire, a compass needle kept nearby gets deflected from its north-south position.
Statement II: Electric current shows only magnetic effect.

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Solution

When a current is switched on through a wire, the wire starts behaving as a magnet. Hence, when a compass needle is placed near the given current carrying wire, it gets influenced by the magnetic effect of electric current and gets deflected from its North-South position.

Electric current not only shows magnetic effect, it shows heating effect as well.

Therefore, option A is correct.

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