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Monaural or monophonic sound reproduction (often shortened to mono) is sound intended to be heard as if it were emanating from one position. This contrasts with stereophonic sound or stereo, which uses two separate audio channels to reproduce sound from two microphones on the right and left side, which is reproduced with two separate loudspeakers to give a sense of the direction of sound sources. In mono, only one loudspeaker is necessary, but, when played through multiple loudspeakers or headphones, identical signals are fed to each speaker, resulting in the perception of one-channel sound "imaging" in one sonic space between the speakers (provided that the speakers are set up in a proper symmetrical critical-listening placement). Monaural recordings, like stereo ones, typically use multiple microphones fed into multiple channels on a recording console, but each channel is "panned" to the center. In the final stage, the various center-panned signal paths are usually mixed down to two identical tracks, which, because they are identical, are perceived upon playback as representing a single unified signal at a single place in the soundstage. In some cases, multitrack sources are mixed to a one-track tape, thus becoming one signal. In the mastering stage, particularly in the days of mono records, the one- or two-track mono master tape was then transferred to a one-track lathe intended to be used in the pressing of a monophonic record. Today, however, monaural recordings are usually mastered to be played on stereo and multi-track formats, yet retain their center-panned mono soundstage characteristics.
Monaural sound has largely been replaced by stereo sound in most entertainment applications, but remains the standard for radiotelephone communications, telephone networks, and audio induction loops for use with hearing aids. FM radio stations broadcast in stereo, while most AM radio stations broadcast in mono. (Although an AM stereo broadcast standard exists, few AM stations are equipped to use it.) A few FM stations—notably talk-radio stations—choose to broadcast in monaural because of the slight advantage in signal strength and bandwidth the standard affords over a stereophonic signal of the same power.

Source: Wikipedia