If the core laminations are grounded at the wrong location, _____________ currents will occur, causing ___________ (primarily on core-form transformers).

The correct response identifies that if the core laminations of transformers are grounded improperly, circulating currents will emerge. When the grounding is not done correctly, it can create a path for currents to flow within the transformer structure itself rather than being contained within the designed electrical system. These circulating currents can develop due to differences in potential and are particularly concerning for core-form transformers, where the core is physically structured to carry magnetic flux efficiently.

As a result of these circulating currents, overheating may occur. This is because the unintended currents can generate excess heat within the transformer core, leading to thermal stress and potential damage to insulation and other critical components. Overheating compromises the efficiency and longevity of the transformer, resulting in a failure to operate within safe temperature limits.

The other options do not accurately reflect the nuances of transformer grounding issues as clearly. For example, while induced currents might suggest a form of current generation due to electromagnetic induction, this doesn’t directly address the complications brought about by improper grounding. Similarly, leakage currents typically refer to currents that stray from their intended path, but in the context of transformer core laminations, circulating currents are a more relevant concern due to the potential for overheating.