Final answer:
A computer component that stores files and other data is called a storage device, which includes hard drives, USB drives, and optical media like CDs and DVDs.
Step-by-step explanation:
A computer component that stores files and other data is typically referred to as a storage device. These devices come in various forms, such as an internal hard drive, which utilizes magnetic encoding, external storage devices like USB drives, and optical media such as CDs and DVDs that store information digitally through laser-created pits. The concept of memory in computing is akin to a file cabinet in the human mind, organizing data into categories or concepts for easy retrieval. While traditional storage mediums like CDs or DVDs are becoming less prevalent due to streaming services, they played a significant role in allowing the storage of large datasets, including entire encyclopedias.