Files provide permanent data storage on a secondary device, ensuring data is not lost when a program terminates or the computer is shut off. They are also used to store data collections that are too large to fit into the available main memory. Additionally, files are an important factor of information management for securing data for later use if a program requires only a small portion of it at a time.
First read the answer fully, then try to explain it in your own words. After that, open a few related questions and compare the concepts. This method helps you remember the topic for a longer time and improves exam preparation.