Explain how a circular current loop behaves as a magnetic dipole.

Hint
We know that moving current produces magnetic fields according to Biot-Savart's law: $ bd = \dfrac{{{\mu _0}}}{{4\pi }}.\dfrac{{idl.\sin \theta }}{{{r^2}}} $
In electrical signalling an analog current loop is used where a device must be monitored or controlled remotely over a pair of conductors.

Complete step by step answer
Current loop as a magnetic dipole behaves like a magnet. It has magnetic field lines as well as north and south poles just like a bar magnet. To put all this in a simpler perspective, imagine a clock. Now the clock completes one round from 12 - 12. That direction is what we call clockwise. So if current is clockwise direction then the direction of magnetic field lines will be in inward direction.
Similarly, direction opposite to movement of clock is called anti-clockwise direction. So if current is moving in anti-clockwise direction then direction of magnetic field lines will be in outward direction i.e. If current is in an anti-clockwise direction then direction of magnetic field lines will be in outward direction. If current is in clockwise direction the direction of magnetic field lines will be in inward direction.

Note
Current loop behaves like a bar magnet because the magnetic field created by the bar magnet and current loop shows the same amount of deflection in the magnetic needle when brought near.