Which type of memory is designated as a temporary storage area and is also referred to as system memory?

The type of memory referred to as a temporary storage area and known as system memory is RAM, which stands for Random Access Memory. RAM is crucial for the functioning of a computer, as it provides the necessary space for the processor to read and write data that is actively being used or processed. Unlike mass storage devices, which retain data permanently, RAM loses its data when the power is turned off, making it characterized as volatile memory.

In computer systems, RAM allows for fast access to data and enables multitasking by storing the operating system, application programs, and currently processed data. This temporary storage capability means that it can quickly respond to the CPU's requests, greatly enhancing performance compared to permanent storage, which has slower access times.

The other options do not fulfill the criteria for being classified as temporary storage or system memory. Mass storage devices refer to hard drives or SSDs that provide long-term data retention, while disk cache is a faster memory typically used to store frequently accessed data from the disk but doesn't serve the same function as RAM. A permanent storage area denotes non-volatile memory that retains information even when the system is powered off, which is fundamentally different from the role of RAM in a computer system.