Whenever current flows through a conductor magnetic field is produced in the area surrounding the conductor (this phenomena was discovered by scientist Orested). So concluded that whenever the electrons are in motion magnetic field is produced vice versa is also true whenever magnetic field is in motion with respect to a given conductor electrons start flowing in that conductor, hence the current comes into existence (as proved by Faraday) .
This phenomena whereby an e.m.f and hence current is induced in any conductor which is cut across of is cut by magnetic flux is known as electromagnetic Induction.
Electromagnetic Induction is the basic phenomena on which every electrical machine works whether DC or AC including Transformers.
* intersecting fact
While the production of magnetic field due to flow of electrons was accidental discovery.
It took nine long years for Faraday to convert magnetic energy into electrical energy and all through these he use to carry magnets in his pockets so as to constantly remind him of the problem.
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