Magnetic Effect: A current carrying wire has a magnetic has a magnetic field around it. If the current carrying wire is wound on a bar of soft iron, it becomes strongly magnetised. When the current is stopped, the iron loses magnetism. Electromagnets, produced in this way, are extremely useful. Strong electromagnets are used in industry for lifting and transporting steel plates, girders, scrap iron, etc. These are also used in electric bells, telephone receivers etc. Chemical Effect, Electrolysis: An electric current passed through a solution results in the decomposition of the solution into negative and positive ions. Negative ions collect at the positive electrode (anode) and the positive ions collect at the negative electrode (cathode). This phenomenon is known as electrolysis. Electrolysis is widely used in electroplating, i.e. Coating of a base metal with a layer of more expensive metal. Electroplating with gold and silver is quite common. Contacts of electronic components used in computers, etc. Are gold plated to avoid atmospheric corrosion. Electrolysis plays an important role in metallergy.