What is the function of a transformer in an electrical system?

A transformer plays a crucial role in an electrical system by changing the voltage of electrical power. Its primary function is to either step up (increase) or step down (decrease) voltage levels while keeping the power (the product of voltage and current) balanced, assuming negligible losses. This capability is vital for adapting electricity from power generation sources to the appropriate levels needed for distribution to homes and businesses. For instance, high voltages are used for long-distance transmission to minimize energy loss, which can then be transformed to lower voltages suitable for consumer use.

The other functions mentioned in the incorrect options do not accurately describe the role of a transformer. Generating electrical power is accomplished at the power generation stage, while reducing electric consumption involves energy-efficient practices and devices rather than voltage transformation. Preventing electrical faults typically relates to circuit protection devices rather than the operation of transformers. Thus, the correct understanding of a transformer's function is essential for managing voltage levels in an electrical system effectively.