Final answer:
The use of the term 'DIACOM' for storing digital images is incorrect; the correct formats are DICOM for medical imaging and JPEG for general digital photos, with JPEG being popular due to its color display and compression.
Step-by-step explanation:
The statement that digital images are stored in a DIACOM format is false. The correct term is DICOM, which stands for Digital Imaging and Communications in Medicine, and it is primarily used in medical imaging. For general digital photos, the JPEG format, standing for Joint Photographic Experts Group, is the most common. Two main reasons for using JPEG format are its ability to display millions of colors, making it perfect for photos, and its compression capabilities, allowing users to save more photos in less space without significant loss of quality.