Directory
Files are kept in folders called directories. As in the case of files, a directory is also identified by what we called directory name. You can create many subdirectories under a directory. Nowadays, the name 'folder' is also used as a synonym for directory.
Directories are used as a way of organizing files in the computer. All operation systems have their own way of keeping track of files and directories in relation to size, date created, access type, name, etc.