Transformer eddy currents are known to cause what type of losses?

The correct answer is core losses. Eddy currents are looped currents that are induced in the conductive core of a transformer when it is subjected to a changing magnetic field. These currents flow in circular paths within the core material and generate heat due to the resistance of the core, resulting in energy being lost in the form of heat.

Core losses consist of both hysteresis and eddy current losses. Hysteresis losses occur due to the magnetic properties of the material when it undergoes magnetization cycles, while eddy current losses specifically relate to the unwanted currents generated. Proper design measures, such as using laminated core materials, are implemented to reduce these losses and increase the efficiency of transformers. Understanding that eddy currents lead to core losses helps in effectively managing energy efficiency and performance in electrical systems.