What type of storage is used for holding data temporarily, often utilizing a volatile medium?

The selection of temporary storage is accurate because it specifically refers to storage systems that hold data for short durations while a computer is in operation. This type of storage, typically exemplified by RAM (Random Access Memory), is designed to be fast and quickly accessible but is volatile, meaning that the data contained within is lost when the power is turned off or when the system is reset.

Temporary storage is essential for the smooth operation of applications and processes, as it allows immediate access to data needed by the CPU without the slower performance associated with permanent or external storage methods. The volatility of this medium underscores its role in providing a working space for active data management, which contrasts sharply with other types of storage that are designed for longevity and retention of data even when unpowered.