Step 1: Understand the phenomenon
When a changing magnetic field passes through a nearby metal conductor, it induces circulating currents in the metal.
Step 2: Explain the nature of these currents
These induced currents flow in closed loops within the conductor.
Because the metal has resistance, these currents cause energy dissipation in the form of heat.
Step 3: Name of such currents
These induced currents are known as Eddy currents.
Step 4: Applications and effects
Eddy currents are used in induction heating, electromagnetic braking, and metal detectors.
However, they can cause unwanted energy loss in transformers and electric motors.
Final conclusion
Thus, changing magnetic fields induce Eddy currents in nearby metal bodies which dissipate electrical energy as heat.