A compass needle which is allowed to move in a horizontal plane is taken to a geomagnetic pole. It

The magnetic field of the earth is vertical at poles. So, a freely suspended magnet, or a compass needle will align vertically at poles. But, the compass needle, in the given situation is restricted from any vertical movements. But, the horizontal motion is unprecedented and can be oriented to any direction. Hence, the needle will take any position depending on any external horizontal forces or other conditions.

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