A wire coil is connected to a galvanometer.

When you push a magnet towards the

center of the coil, then pull it away, the galvanometer needle deflects in one direction,
then the other. How far the needle deflects depends on the strength of the magnet and
how fast you move it.
This demonstration is an illustration of Faradays law of induction, which states that a
changing magnetic flux induces an electromotive force, or emf, in a loop of wire,
or E = -dB/dt. This emf then pushes a current through the loop. Even though it is the
induced emf that is responsible for the current, it is not uncommon for people to speak
of the current as being induced by the changing magnetic flux, as a kind of shorthand.
For a coil wound so that the turns are close to each other, the change in flux through
each turn is the same, and an emf appears across each turn. Thus, for a coil of N turns,
the emf across the whole coil is E = -NdB/dt.
This also demonstrates Lenzs law, which states that the current produced by the
induced emf flows in the direction that opposes the change in flux that induced the
emf. This is implied by the minus sign in Faradays law. If you bring the north end of
the magnet towards the coil, the induced emf produces a current whose associated
magnetic field has its north end pointing towards the magnet. (See
demonstrations 68.13 -- Right-hand rule model, and 68.46 -- Magnetic fields of coils.)
If you pull the north end away from the magnet, the current flows in the opposite
direction, so that the associated magnetic field points with its south pole towards the
magnet. Similarly, if you flip the magnet to bring its south pole towards the coil, the
current flows in the direction that produces a magnetic field whose south pole faces
the magnet, and if you pull the magnet away, it reverses so that the north pole faces
the magnet. How fast you move the magnet determines the rate of change of the
magnetic flux, so the faster you move the magnet, the greater the needle deflection.
Which way the galvanometer deflects depends on which side of the coil faces the
magnet as you are moving it. The coils are marked to show which end goes to the red
wire and which end goes to the black wire, so that if you wish, you can predict the
direction in which the needle will deflect as you move the magnet.
It does not matter, of course, whether you keep the coil stationary and move the
magnet, or keep the magnet stationary and move the coil. What is important is their
motion relative to each other, which is what determines the change in magnetic flux
through the coil.

1
2

http://www.studyrankers.com/2015/02/magnetic-effects-of-electriccurrents-class-10th-ncert-solutions.html
http://www.electronics-tutorials.ws/electromagnetism/electromagneticinduction.html