Electrical Machines
In a DC generator, the armature reaction results in

  magnetization of inter poles.
 demagnetization of centers of poles.
 magnetization of leading and demagnetization of trailing pole tip.
  demagnetization of leading & magnetization of trailing pole tip.

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Electrical Machines
Compensating windings are used in DC generators

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

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