RAM stands for Random Access Memory, and it is used to store data temporarily that the computer's CPU can access quickly. This memory is volatile, which means it only retains data while the device is powered on, making it ideal for managing the multitude of operations a computer performs while in use. By holding active applications and processes, it enables the computer to perform multiple tasks efficiently. Other choices, such as permanently storing files or speeding up the internet connection, are not functions of RAM.