Electrical Machines
Capacitor in split phase induction motor is used to

 start the motor.
 improve the starting torque.
 reduce the harmonics.
 improve the power factor.

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Electrical Machines
Compensating windings are used in DC generators

None of these
  mainly to reduce the eddy currents by providing local short circuit.
  to neutralize the cross magnetizing effect of the armature reaction.
  to provide path for the circulation of cooling air.

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