Each side of the coil travels upwards then downwards then upwards etc. so the current flows backwards then forwards then backwards etc. so it is an alternating current.
When the coil is rotated, it cuts magnetic field lines, so an EMF is generated, which makes a current flow.
The brushes are 2 contacts which rub against the slip rings and keep the coil connected to the outside part of the circuit, usually made of carbon.
The coil is made of insulated copper wire and is rotated by turning the shaft; the slip rings are fixed to the coil and rotate with it.
The current is maximum when the coil is horizontal since field lines are being cut at the fastest rate and 0 when the coil is vertical, since it is cutting NO field lines.