A diode allows current to pass easily in one direction and blocks current in the other direction. Diodes are commonly used for rectification which is the conversion of alternating current (AC) into direct current (DC). Because a diode only allows current flow in one direction, it will pass either the upper or lower half of AC waves (half-wave rectification) creating pulsating DC. Multiple diodes can be connected together to utilize both halves of the AC signal in full-wave rectification.

Current flow through a wire increases the temperature of the wire. If too small a wire is used, the wire will heat up causing a loss in conductivity and possibly a fire. The thicker in diameter a wire is, the more current it can carry without overheating.

A transformer utilizes an inductor to increase or decrease the voltage in a circuit. AC flowing in a coil wrapped around an iron core magnetizes the core causing it to produce a magnetic field. This magnetic field generates a voltage in a nearby coil of wire and, depending on the number of turns in the wire of the primary (source) and secondary coils and their proximity, voltage is induced in the secondary coil.

Direct current flows in only one direction in a circuit, from the negative terminal of the voltage source to the positive. A common source of direct current (DC) is a battery.

Electricity is delivered from power stations to customers as AC because it provides a more efficient way to transport electricity over long distances. A line drop is a decrease in voltage between two points on an electrical transmission line due to resistance in the line. A lower current and higher voltage across the line will help compensate for the line drop.