File: A file is a collection of related data or information stored under a single name on a computer's storage device. For example, a document, image, or music track saved on a computer is a file.
Folder: A folder (also called a directory) is a container used to organise and store multiple files or other folders. It helps in managing files systematically. For example, a folder named "School" may contain files like notes and assignments.
The source passages provided are unrelated to this question (they cover financial markets). However, the concept of files and folders is standard Class 10 IT/Computer Science content. Examiners expect: a clear one-line definition of each term with a simple example. Two marks = one point each for file and folder, with examples. Avoid writing lengthy paragraphs; concise definitions with examples are sufficient.