State the two functions performed by a modem.

Explanation

**Step-by-Step Solution:**

1. **Understanding the Role of a Modem**: A modem is a device that enables communication between computers and other devices over telephone lines, cable systems, or satellite links. It plays a crucial role in converting digital data from a computer into analog signals that can be transmitted over these media.

2. **First Function - Modulation**: The first primary function of a modem is modulation. This process involves converting digital signals (binary data) from a computer into analog signals. This is necessary because traditional communication channels (like telephone lines) are designed to carry analog signals. Modulation allows the digital data to be transmitted effectively over these channels.

3. **Second Function - Demodulation**: The second primary function of a modem is demodulation. This is the reverse process of modulation. It involves converting the incoming analog signals back into digital signals that can be understood by the computer. This allows the computer to process the data received from the communication channel.

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