Final answer:
The statement is false; modems can be both internal devices, fitted inside a computer, and external devices, attached through various ports. External modems are common with broadband, while internal modems were popular during the dial-up internet era and are still used in certain business applications.
Step-by-step explanation:
Modems come in two main forms: external and internal. An external modem is a separate standalone device that connects to a computer through a serial, USB, or Ethernet port. Meanwhile, an internal modem is a hardware component installed inside the computer; it typically takes the form of an expansion card that fits into a slot on the motherboard. Modems serve the critical function of modulating and demodulating signals for internet communication, allowing digital data to be sent over telephone lines or cable systems.
Internal modems were more common in the past when dial-up internet access was widespread. In current technology ecosystems, where high-speed broadband connections predominate, external modems, such as cable or DSL modems, are more prevalent. However, internal modems are still in use, especially in business environments that use dial-up or dedicated lines for specific applications.