Question

What causes the deflection of magnetic needle when the electricity is passed through the wire near it or wounded on it ?

Answer 1

We can conclude from this experiment that an electric current causes a magnetic field around it just like a magnet causes a magnetic field. When you moved the compass near a bar magnet, the needle pointed toward the magnet's magnetic field and not toward the north. When you put the compass near the electrical wire with current flowing through it, the compass did not point north; instead, the compass needle pointed in the direction of the current's magnetic field.