A transformer has negative voltage regulation when its load power factor is

(A) Lagging
(B) Leading
(C) Unity
(D) Any of the above

Answer : (B) Leading

Explanation
For leading power factor load, the secondary voltage increases slightly with an increase in the load current. Thus for leading power factor loads, the regulation is negative (raise in voltage as load current increases)
When load is of the capacitive type, V2 > E2 & hence, regulation becomes negative.

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