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Alternating current is bi-directional current that changes its direction frequently in circuit wheras Direct current is uni-directional current that does not change its direction when flowing in a circuit.

In transformer(be it step up or step down) ONLY AC is used.This is because the direction keeps on changing so due to this the magnetic field also varies.So this leads to electromagnetic induction and there by this is the principle of a transformer. DC cannot be used in this because the direction does not change and due to this there is no change in the magnetic field and thereby electromagnetic induction does not take place

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