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Due to the flow of electric charges ie current flow, a magnetic field is produced. Hence a moving electric charge in the region where magnetic field is present then a force acts on the moving charged particle. This is due to the interaction between the magnetic field due to flowing charge and the magnetic field present. Same way as a current carrying conductor is kept in a magetic field then a force is acting on the conductor. Even magnetism is produced due to the electrons going around the nucleus as well as the spin of the electrons. So with the configuration of electrons we have three magnetic materials such as dia, para and ferro.

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