The full form of AM/FM is Amplitude/ Frequency Modulation

Amplitude modulation (AM) is a modulation technique used in electronic communication, most commonly for transmitting messages with a radio wave. In amplitude modulation, the amplitude (signal strength) of the carrier wave is varied in proportion to that of the message signal, such as an audio signal. This technique contrasts with angle modulation, in which either the frequency of the carrier wave is varied, as in frequency modulation, or its phase, as in phase modulation.

AM was the earliest modulation method used for transmitting audio in radio broadcasting. It was developed during the first quarter of the 20th century beginning with Roberto Landell de Moura and Reginald Fessenden’s radiotelephone experiments in 1900. This original form of AM is sometimes called double-sideband amplitude modulation (DSBAM), because the standard method produces sidebands on either side of the carrier frequency. Single-sideband modulation uses bandpass filters to eliminate one of the sidebands and possibly the carrier signal, which improves the ratio of message power to total transmission power, reduces power handling requirements of line repeaters, and permits better bandwidth utilization of the transmission medium.

Frequency modulation (FM) is the encoding of information in a carrier wave by varying the instantaneous frequency of the wave. The technology is used in telecommunications, radio broadcasting, signal processing, and computing.

In analog frequency modulation, such as radio broadcasting, of an audio signal representing voice or music, the instantaneous frequency deviation, i.e. the difference between the frequency of the carrier and its center frequency, has a functional relation to the modulating signal amplitude.

Digital data can be encoded and transmitted with a type of frequency modulation known as frequency-shift keying (FSK), in which the instantaneous frequency of the carrier is shifted among a set of frequencies. The frequencies may represent digits, such as ‘0’ and ‘1’. FSK is widely used in computer modems, such as fax modems, telephone caller ID systems, garage door openers, and other low-frequency transmissions. Radioteletype also uses FSK.