RAM (random access memory) is the place in a computer where the OS, application programs, and data in current use are kept so that they can be quickly reached by the computer's processor. RAM is much faster to read from and write to than the other kinds of storage in a computer, the hard disk, floppy disk, and CD-ROM. However, the data in RAM stays there only as long as your computer is running. When you turn the computer off, RAM loses its data. When you turn your computer on again, your operating system and other files are once again loaded into RAM, usually from your hard disk.
RAM can be compared to a person's short-term memory and the hard disk to the long-term memory. The short-term memory focuses on work at hand, but can only keep so many facts in view at one time. If short-term memory fills up, your brain sometimes is able to refresh it from facts stored in long-term memory. A computer also works this way. If RAM fills up, the processor needs to continually go to the hard disk to overlay old data in RAM with new, slowing down the computer's operation. Unlike the hard disk which can become completely full of data so that it won't accept any more, RAM never runs out of memory. It keeps operating, but much more slowly than you may want it to.