A steel paper clip close to a magnet will be magnetically polarized by the magnet so that it is at least tentatively a magnet.
Step-by-step explanation:
If we apply the magnetic pole design of magnets, the surface of the clip near a North pole of a magnet will display a South pole, and the opposite side will display a North pole.
The magnetic field generated by a magnet will nearly invariably decrease in intensity with length apart from the magnet. That suggests that the magnetic field will be definite on the adjacent, or in this illustration, South pole of the clip than on the distant or North pole of the clip.