Step 1: Understand the concept of eddy currents.
Eddy currents are circular currents induced in a conductor when the magnetic field around it changes. These currents oppose the change in the magnetic flux according to Lenz's Law.
Step 2: Conclusion.
Eddy currents are produced when a metal is exposed to a varying magnetic field, causing changes in the magnetic flux through the metal.
Final Answer:
\[
\boxed{\text{A metal is kept in varying magnetic field.}}
\]