A moving electric current produces a magnetic field proportional to the amount of current flow. This magnetic field can be made stronger by winding the wire into a coil and further enhanced if done around an iron containing (ferrous) core.

Current flow through a wire increases the temperature of the wire. If too small a wire is used, the wire will heat up causing a loss in conductivity and possibly a fire. The thicker in diameter a wire is, the more current it can carry without overheating.

In the NM cable used for wiring homes, each cable has three wires inside a sheath with each wire covered in a different color of insulation to indicate its type. The wire with the black insulation is the 'hot' wire, white is the neutral wire, and the ground wire is either covered in green insulation or left bare.

Resistors are used to limit voltage and/or current in a circuit and can have a fixed or variable resistance.  Variable resistors (often called potentiometers or rheostats) are used when dynamic control over the voltage/current in a circuit is needed, for example, in a light dimmer or volume control.

Capacitors store electricity and are used in circuits as temporary batteries. Capacitors are charged by DC current (AC current passes through a capacitor) and that stored charge can later be dissipated into the circuit as needed. Capacitors are often used to maintain power within a system when it is disconnected from its primary power source or to smooth out or filter voltage within a circuit.