A circular loop of conducting wire is placed near a current carrying wire as shown in the figure. Both are in the same plane. If the current flowing through the wire is suddenly increased.

Loop will have induced current in the clockwise direction

The correct answer is Option (2) → Loop will have induced current in the clockwise direction

The magnetic field due to the straight current-carrying wire at the location of the circular loop is directed into the plane of the loop (by the right-hand rule).

When the current in the wire is increased, the magnetic flux through the loop (into the plane) increases.

According to Lenz’s law, the induced current in the loop will oppose this increase by producing a magnetic field in the opposite direction — i.e., out of the plane.

To produce a field out of the plane, the induced current in the loop must flow in the clockwise direction.

Answer: Loop will have induced current in the clockwise direction.