When a small iron bar is kept near the north pole of a bar magnet as shown below, the bar becomes a magnet due to magnetic induction i.e., it acquires the property of attracting iron fillings when they are brought near it’s ends.
Polarity developed at the end A of the bar AB is north (opposite to the polarity of the magnet near end A) and the polarity at end B is south (i.e. similar to the polarity at the end of the magnet near end A).
If the magnet is now removed, the bar will lose it’s magnetism.
Thus, the bar of a magnetic material behaves like a magnet so long it is kept near or in contact with a magnet.
The magnetism so produced is called induced magnetism.