Here is a good example of RAM.
When you're playing a game, all the graphics and sounds are loaded into the RAM so they can be accessed faster than if it were only on the Hard Drive. For example, if you shoot your gun and you didn't have RAM, there would be a lag time for the sound and images.
Because the graphics are loaded into the RAM, the game can access it easier and faster than if it has to search the drive for the appropriate files.