RAM is the computer's temporary memory that is erased when the power is turned off. There are two main types of RAM - static RAM (SRAM) which is fast but expensive, and dynamic RAM (DRAM) which is slower but cheaper. DRAM needs to be regularly refreshed to prevent data loss. RAM modules like SIMMs, DIMMs, and RIMMs directly plug into the motherboard and come in different widths and data transfer speeds. Factors like RAM type, amount installed, and latency specifications determine overall memory performance.