Why are artificial magnets made of steel?

Because steel will remain magnetized, but iron soon loses the magnetic properties.

What is a compass?

A compass is an instrument containing a magnetic needle, so balanced as to move easily on a pivot.

In what direction does this needle always point?

This needle always points toward the north.

By whom is the compass used?

It is used by travellers to guide them on their journey; by surveyors to mark out the boundary lines between different properties; and by seamen to point out their way across the sea from one place to another.

Before the Mariner’s Compass was invented, seamen were afraid to venture out of the sight of land, for fear of being lost on the ocean; for they then had no means of telling where they were, or in what direction to guide their vessels, so as to reach the land again.

Electro-Magnetism.